NBTB NBT Bancorp Inc

NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three and nine months ended September 30, 2024.

Net income for the three months ended September 30, 2024 was $38.1 million, or $0.80 per diluted common share, compared to $24.6 million, or $0.54 per diluted common share, for the three months ended September 30, 2023, and $32.7 million, or $0.69 per diluted common share, for the second quarter of 2024. Operating diluted earnings per share(1), a non-GAAP measure, which excludes acquisition expenses, acquisition-related provision for credit losses and unfunded loan commitments and securities gains (losses), net of tax, was $0.80 for the third quarter of 2024, compared to $0.84 for the third quarter of 2023 and $0.69 for the second quarter of 2024.

The Company completed the acquisition of Salisbury Bancorp, Inc. (“Salisbury”) on August 11, 2023, adding 13 banking offices, $1.18 billion in loans and $1.31 billion in deposits. The comparisons to the third quarter of 2023 are significantly impacted by the Salisbury acquisition.

CEO Comments

“Sequential growth in net interest income and margin for the second consecutive quarter as well as strong performance from our diverse mix of fee businesses drove NBT’s positive operating performance in the third quarter of 2024.” said NBT President and Chief Executive Officer Scott A. Kingsley. “In September, we entered into a definitive agreement to merge with Evans Bancorp, Inc. The greater Buffalo and Rochester communities served by Evans are a natural extension of NBT's footprint in Upstate New York, and our shared community banking values support our strategic rationale. We expect the merger to close in the second quarter of 2025, pending required approvals by regulatory agencies and Evans’ shareholders.”

Third Quarter 2024 Financial Highlights

Net Income	Net income was $38.1 million and diluted earnings per share was $0.80
Net Interest Income / NIM	Net interest income on a fully taxable equivalent (“FTE”) basis was $102.3 million, up $4.5 million from the prior quarter(1) Net interest margin (“NIM”) on an FTE basis was 3.27%(1), up 9 basis points (“bps”) from the prior quarter Included in FTE net interest income was $2.7 million of acquisition-related net accretion, which was consistent with the second quarter of 2024 Earning asset yields of 5.01% were up 9 bps from the prior quarter Total cost of funds of 1.85% was consistent with the prior quarter
Noninterest Income	Noninterest income was at a record level of $45.3 million, or 30.8% of total revenues, excluding net securities gains (losses)
Loans and Credit Quality	Period end total loans of $9.91 billion as of September 30, 2024, up $256.3 million, or 3.5% annualized, from December 31, 2023 Net charge-offs to average loans was 0.16% annualized Nonperforming loans to total loans was 0.38% Allowance for loan losses to total loans was 1.21%
Deposits	Deposits were $11.59 billion as of September 30, 2024, up $619.3 million, or 5.6%, from December 31, 2023 Total cost of deposits was 1.72% for the third quarter of 2024, up 4 bps from the second quarter of 2024 Full cycle to-date deposit beta of 31% Composition of total deposits is diverse and granular with over 563,000 accounts with an average per account balance of $20,560
Capital	Stockholders’ equity was $1.52 billion as of September 30, 2024 Tangible book value per share(2) was $23.83 at September 30, 2024 Tangible equity to assets of 8.36%(1) CET1 ratio of 11.86%; Leverage ratio of 10.29%

Loans

• Period end total loans were $9.91 billion at September 30, 2024, $9.85 billion at June 30, 2024 and $9.65 billion at December 31, 2023.
• Period end total loans increased $256.3 million from December 31, 2023. Total commercial loans increased $270.3 million to $5.25 billion; and total consumer loans decreased $13.9 million to $4.66 billion. Excluding the other consumer and residential solar portfolios that are in a planned run-off status, period end loans increased $384.4 million, or 6.0% annualized.
• Commercial line of credit utilization rate was 22% at September 30, 2024, compared to 23% at June 30, 2024 and 22% at September 30, 2023.

Deposits

• Total deposits at September 30, 2024 were $11.59 billion, compared to $11.27 billion at June 30, 2024 and compared to $10.97 billion at December 31, 2023. The $619.3 million increase in deposits from December 31, 2023 was primarily due to higher consumer deposit balances and accounts and the inflow of seasonal municipal deposits. The Company continued to experience some incremental migration from noninterest bearing and low interest checking and savings accounts into higher cost money market and time deposit instruments.
• The loan to deposit ratio was 85.5% at September 30, 2024, compared to 88.0% at December 31, 2023.

Net Interest Income and Net Interest Margin

• Net interest income for the third quarter of 2024 was $101.7 million, an increase of $4.5 million, or 4.6%, from the second quarter of 2024 and up $6.8 million, or 7.1%, from the third quarter of 2023. The increase in net interest income from the second quarter of 2024 resulted primarily from the increase in average loans and the interest earned on those balances combined with a more favorable funding mix, partially offset by the increase in the cost of deposits.
• The NIM on an FTE basis for the third quarter of 2024 was 3.27%, an increase of 9 bps from the second quarter of 2024. This increase was driven by higher average earning asset yields, an improved funding mix with lower average balances of short-term borrowings and an increase in the average balance of noninterest-bearing demand deposit accounts, partially offset by an increase in the cost of interest-bearing deposits. The NIM on an FTE basis increased 6 bps from the third quarter of 2023 due to higher earning asset yields, the impact of acquisition-related net accretion and lower average balances of short-term borrowings, partially offset by the increase in the cost of interest-bearing deposits.
• Earning asset yields for the three months ended September 30, 2024 increased 9 bps from the prior quarter to 5.01% and increased 38 bps from the same quarter in the prior year. Loan yields for the three months ended September 30, 2024 increased 11 bps from the prior quarter to 5.74% and increased 38 bps from the same quarter in the prior year. Average earning assets increased $79.2 million, or 0.6%, from the second quarter of 2024 due to organic loan growth. Average earning assets grew $644.2 million, or 5.5%, from the third quarter of 2023 due to organic loan growth and the Salisbury acquisition, completed in August 2023.
• Total cost of deposits, including noninterest bearing deposits, was 1.72% for the third quarter of 2024, an increase of 4 bps from the prior quarter and an increase of 54 bps from the same period in the prior year. For the month of September 2024, the total cost of deposits was 1.72%.
• Total cost of funds for the three months ended September 30, 2024 was 1.85%, consistent with the prior quarter and an increase of 35 bps from the third quarter of 2023. For the month of September 2024, the total cost of funds was 1.83%.

Asset Quality and Allowance for Loan Losses

• Net charge-offs to total average loans for the third quarter of 2024 was 16 bps compared to 15 bps in the prior quarter. Net charge-offs for the portfolios in a planned run-off status represented the majority of total net charge-offs for the quarter.
• Nonperforming assets to total assets was 0.27% which was consistent with the previous three quarter ends at 0.28%.
• Provision expense for the three months ended September 30, 2024 was $2.9 million, compared to $8.9 million for the second quarter of 2024. The decrease in provision expense from the prior quarter was primarily due to lower level of loan growth in the third quarter including the run-off of the other consumer and residential solar portfolios, the establishment of a specific reserve in the prior quarter and the stabilization of expected prepayment assumptions impacting the expected life of the loan portfolios. Included in the provision expense in the third quarter of 2023 was $8.8 million of acquisition-related provision for loan losses.
• The allowance for loan losses was $119.5 million, or 1.21% of total loans, at September 30, 2024, compared to $120.5 million, or 1.22% of total loans, at June 30, 2024 and $114.4 million, or 1.19% of total loans, at December 31, 2023.
• The reserve for unfunded loan commitments was $4.6 million at September 30, 2024, compared to $4.3 million at June 30, 2024 and $5.1 million at December 31, 2023. The provision for unfunded loan commitments in the third quarter of 2023 included $0.8 million of acquisition-related provision for unfunded loan commitments.

Noninterest Income

• Total noninterest income, excluding securities gains (losses), was $45.3 million for the three months ended September 30, 2024, up $2.0 million, or 4.6%, from the second quarter of 2024, and up $4.9 million, or 12.1%, from the third quarter of 2023.
• Retirement plan administration fees were consistent with the prior quarter and increased $1.8 million from the third quarter of 2023. The increase from the third quarter of 2023 was driven by organic growth and higher market levels.
• Wealth management fees increased $0.8 million from the prior quarter and were up $1.6 million from the third quarter of 2023. The increase from the prior quarter was driven by organic growth and seasonal activity-based fees. The increase from the third quarter of 2023 was driven by the addition of Salisbury revenues, organic growth and market performance.
• Insurance revenues increased $1.1 million from the prior quarter driven by seasonal renewals and increased $0.6 million from the prior year due to organic growth.

Noninterest Expense

• Total noninterest expense was $95.7 million for the third quarter of 2024, compared to $89.6 million for the second quarter of 2024 and $90.8 million for the third quarter of 2023. Excluding $0.5 million of acquisition expenses in the third quarter of 2024 and $7.9 million of acquisition expenses in the third quarter of 2023, total noninterest expense increased 6.3% compared to the previous quarter and increased 14.9% from the third quarter of 2023.
• Salaries and benefits increased 7.7% from the prior quarter driven by one additional payroll day and an increase in other benefits including higher levels of incentive compensation. The 21.1% increase from the third quarter of 2023 was driven by the impact of the Salisbury acquisition, merit pay increases, higher levels of incentive compensation, higher medical and other benefit costs.
• Technology and data services increased from the prior quarter primarily due to timing of planned initiatives and continued investment in digital platform solutions.
• Occupancy costs were consistent with the prior quarter and increased from the third quarter of 2023 driven by additional expenses related to the Salisbury acquisition.
• Professional fees and outside services were consistent with the prior quarter and increased from the third quarter of 2023 driven by additional expenses from the Salisbury acquisition and the timing of external services for several tactical and strategic initiatives.
• Amortization of intangible assets were consistent with the second quarter of 2024 and increased $0.5 million from the third quarter of 2023 primarily due to the amortization of intangible assets related to the Salisbury acquisition.

Income Taxes

• The effective tax rate was 21.9% for the third quarter of 2024 consistent with 22.0% in the second quarter of 2024 and down from 22.4% for the third quarter of 2023.

Capital

• Tangible common equity to tangible assets(1) was 8.36% at September 30, 2024. Tangible book value per share(2) was $23.83 at September 30, 2024, $22.54 at June 30, 2024 and $20.39 at September 30, 2023.
• Stockholders’ equity increased $96.3 million from December 31, 2023 driven by net income generation of $104.6 million and a $35.2 million decrease in accumulated other comprehensive loss driven by the change in the fair value of securities available for sale, partially offset by dividends declared of $46.2 million.
• September 30, 2024, CET1 capital ratio of 11.86%, leverage ratio of 10.29% and total risk-based capital ratio of 15.02%.

Dividend

• The Board of Directors approved a fourth-quarter cash dividend of $0.34 per share at a meeting held earlier today. The dividend represents a $0.02 per share, or 6.3%, increase over the dividend paid in the fourth quarter of 2023. This is the Company’s twelfth consecutive year of annual dividend increases. The dividend will be paid on December 16, 2024 to stockholders of record as of December 2, 2024.

Stock Repurchase

• The Company purchased 7,600 shares of its common stock during 2024 at an average price of $33.02 per share under its previously announced share repurchase program. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of September 30, 2024, there were 1,992,400 shares available for repurchase under this plan.

Evans Bancorp, Inc. Merger

• On September 9, 2024, NBT announced that it had entered into an agreement to acquire Evans Bancorp, Inc. (“Evans”), an 18 branch community bank headquartered in Williamsville, NY, in an all stock transaction. Evans had assets of $2.26 billion, deposits of $1.89 billion and net loans of $1.74 billion as of June 30, 2024. The merger is expected to close in the second quarter of 2025, subject to the satisfaction of customary closing conditions, including approval by the shareholders of Evans and the receipt of required regulatory approvals.

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Tuesday, October 29, 2024, to review the third quarter 2024 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at 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 $13.84 billion at September 30, 2024. 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 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.nbtbank.com/Insurance.

Forward-Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers, and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”); (5) inflation, interest rates, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) governmental approvals of the Evans merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; (14) the shareholders of Evans may fail to approve the merger; (15) the ability to increase market share and control expenses; (16) changes in the competitive environment among financial holding companies; (17) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) changes in the Company’s organization, compensation and benefit plans; (20) 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; (21) greater than expected costs or difficulties related to the integration of new products and lines of business; and (22) 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.

Contact:

Scott A. Kingsley, President and CEOAnnette L. Burns, Executive Vice President and CFONBT Bancorp Inc.52 South Broad StreetNorwich, NY 13815607-337-6589

NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Profitability (reported)
Diluted earnings per share	$	0.80		$	0.69		$	0.71		$	0.64		$	0.54
Weighted average diluted common shares outstanding		47,473,417			47,382,814			47,370,145			47,356,899			45,398,937
Return on average assets(3)		1.12	%		0.98	%		1.02	%		0.89	%		0.76	%
Return on average equity(3)		10.21	%		9.12	%		9.52	%		8.79	%		7.48	%
Return on average tangible common equity(1)(3)		14.54	%		13.23	%		13.87	%		13.08	%		10.73	%
Net interest margin(1)(3)		3.27	%		3.18	%		3.14	%		3.15	%		3.21	%
	9 Months Ended September 30,
		2024			2023
Profitability (reported)
Diluted earnings per share	$	2.21		$	2.01
Weighted average diluted common shares outstanding		47,409,906			43,896,042
Return on average assets(3)		1.04	%		0.97	%
Return on average equity(3)		9.62	%		9.54	%
Return on average tangible common equity(1)(3)		13.89	%		13.00	%
Net interest margin(1)(3)		3.20	%		3.34	%
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Profitability (operating)
Diluted earnings per share(1)	$	0.80		$	0.69		$	0.68		$	0.72		$	0.84
Return on average assets(1)(3)		1.12	%		0.98	%		0.97	%		0.99	%		1.19	%
Return on average equity(1)(3)		10.23	%		9.14	%		9.04	%		9.79	%		11.65	%
Return on average tangible common equity(1)(3)		14.56	%		13.26	%		13.20	%		14.49	%		16.43	%
	9 Months Ended September 30,
		2024			2023
Profitability (operating)
Diluted earnings per share(1)	$	2.17		$	2.53
Return on average assets(1)(3)		1.03	%		1.22	%
Return on average equity(1)(3)		9.48	%		11.98	%
Return on average tangible common equity(1)(3)		13.69	%		16.25	%
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Balance sheet data
Short-term interest-bearing accounts	$	231,671		$	35,207		$	156,632		$	31,378		$	459,296
Securities available for sale		1,509,338			1,439,445			1,418,471			1,430,858			1,399,032
Securities held to maturity		854,941			878,909			890,863			905,267			914,520
Net loans		9,787,541			9,733,847			9,572,777			9,536,313			9,552,774
Total assets		13,839,552			13,501,909			13,439,199			13,309,040			13,827,628
Total deposits		11,588,278			11,271,459			11,195,289			10,968,994			11,401,452
Total borrowings		456,666			476,082			518,190			637,387			740,603
Total liabilities		12,317,572			12,039,954			11,997,784			11,883,349			12,464,807
Stockholders' equity		1,521,980			1,461,955			1,441,415			1,425,691			1,362,821
Capital
Equity to assets		11.00	%		10.83	%		10.73	%		10.71	%		9.86	%
Tangible equity ratio(1)		8.36	%		8.11	%		7.98	%		7.93	%		7.15	%
Book value per share	$	32.26		$	31.00		$	30.57		$	30.26		$	28.94
Tangible book value per share(2)	$	23.83		$	22.54		$	22.07		$	21.72		$	20.39
Leverage ratio		10.29	%		10.16	%		10.09	%		9.71	%		10.23	%
Common equity tier 1 capital ratio		11.86	%		11.70	%		11.68	%		11.57	%		11.31	%
Tier 1 capital ratio		12.77	%		12.61	%		12.61	%		12.50	%		12.23	%
Total risk-based capital ratio		15.02	%		14.88	%		14.87	%		14.75	%		14.45	%
Common stock price (end of period)	$	44.23		$	38.60		$	36.68		$	41.91		$	31.69

NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Asset quality
Nonaccrual loans	$	33,338		$	34,755		$	35,189		$	34,213		$	20,736
90 days past due and still accruing		3,981			3,333			2,600			3,661			3,528
Total nonperforming loans		37,319			38,088			37,789			37,874			24,264
Other real estate owned		127			74			-			-			-
Total nonperforming assets		37,446			38,162			37,789			37,874			24,264
Allowance for loan losses		119,500			120,500			115,300			114,400			114,601
Asset quality ratios
Allowance for loan losses to total loans		1.21	%		1.22	%		1.19	%		1.19	%		1.19	%
Total nonperforming loans to total loans		0.38	%		0.39	%		0.39	%		0.39	%		0.25	%
Total nonperforming assets to total assets		0.27	%		0.28	%		0.28	%		0.28	%		0.18	%
Allowance for loan losses to total nonperforming loans		320.21	%		316.37	%		305.12	%		302.05	%		472.31	%
Past due loans to total loans(4)		0.36	%		0.30	%		0.33	%		0.32	%		0.49	%
Net charge-offs to average loans(3)		0.16	%		0.15	%		0.19	%		0.22	%		0.18	%
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Loan net charge-offs by line of business
Commercial	$	807		$	(8	)	$	772		$	1,107		$	(344	)
Residential real estate and home equity		(64	)		(76	)		(32	)		11			(75	)
Indirect auto		725			747			665			399			451
Residential solar		1,599			1,610			1,211			1,081			1,253
Other consumer		853			1,426			2,063			2,729			2,919
Total loan net charge-offs	$	3,920		$	3,699		$	4,679		$	5,327		$	4,204
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Allowance for loan losses as a percentage of loans by segment
Commercial & industrial		0.73	%		0.76	%		0.79	%		0.84	%		0.87	%
Commercial real estate		1.01	%		1.00	%		0.97	%		0.99	%		1.00	%
Residential real estate		1.00	%		0.98	%		0.89	%		0.84	%		0.79	%
Auto		0.83	%		0.85	%		0.81	%		0.83	%		0.82	%
Residential solar		3.70	%		3.76	%		3.58	%		3.28	%		3.19	%
Other consumer		3.51	%		4.09	%		4.24	%		4.70	%		5.23	%
Total		1.21	%		1.22	%		1.19	%		1.19	%		1.19	%
		2024									2023
	3rd Q			2nd Q			1st Q			4th Q			3rd Q
Loans by line of business
Commercial & industrial	$	1,458,926		$	1,397,935		$	1,353,446		$	1,354,248		$	1,424,579
Commercial real estate		3,792,498			3,784,214			3,646,739			3,626,910			3,575,595
Residential real estate		2,143,766			2,134,875			2,133,289			2,125,804			2,111,670
Home equity		328,687			326,556			328,673			337,214			340,777
Indirect auto		1,235,175			1,225,786			1,190,734			1,130,132			1,099,558
Residential solar		839,659			861,883			896,147			917,755			934,082
Other consumer		108,330			123,098			139,049			158,650			181,114
Total loans	$	9,907,041		$	9,854,347		$	9,688,077		$	9,650,713		$	9,667,375

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, in thousands)
	September 30,		December 31,
		2024		2023
Assets
Cash and due from banks	$	250,788	$	173,811
Short-term interest-bearing accounts		231,671		31,378
Equity securities, at fair value		41,974		37,591
Securities available for sale, at fair value		1,509,338		1,430,858
Securities held to maturity (fair value $781,868 and $814,524, respectively)		854,941		905,267
Federal Reserve and Federal Home Loan Bank stock		37,732		45,861
Loans held for sale		3,713		3,371
Loans		9,907,041		9,650,713
Less allowance for loan losses		119,500		114,400
Net loans	$	9,787,541	$	9,536,313
Premises and equipment, net		80,133		80,675
Goodwill		362,010		361,851
Intangible assets, net		35,843		40,443
Bank owned life insurance		271,178		265,732
Other assets		372,690		395,889
Total assets	$	13,839,552	$	13,309,040
Liabilities and stockholders' equity
Demand (noninterest bearing)	$	3,476,218	$	3,413,829
Savings, NOW and money market		6,678,936		6,230,456
Time		1,433,124		1,324,709
Total deposits	$	11,588,278	$	10,968,994
Short-term borrowings		204,959		386,651
Long-term debt		29,682		29,796
Subordinated debt, net		120,829		119,744
Junior subordinated debt		101,196		101,196
Other liabilities		272,628		276,968
Total liabilities	$	12,317,572	$	11,883,349
Total stockholders' equity	$	1,521,980	$	1,425,691
Total liabilities and stockholders' equity	$	13,839,552	$	13,309,040

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited, in thousands except per share data)
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
		2024		2023			2024			2023
Interest, fee and dividend income
Interest and fees on loans	$	141,991	$	122,097		$	411,743		$	329,931
Securities available for sale		7,815		7,495			22,501			22,604
Securities held to maturity		5,042		5,281			15,535			15,307
Other		1,382		2,221			4,154			4,033
Total interest, fee and dividend income	$	156,230	$	137,094		$	453,933		$	371,875
Interest expense
Deposits	$	49,106	$	30,758		$	140,133		$	61,888
Short-term borrowings		1,431		7,612			7,751			20,657
Long-term debt		292		294			873			631
Subordinated debt		1,810		1,612			5,416			4,281
Junior subordinated debt		1,922		1,923			5,743			5,372
Total interest expense	$	54,561	$	42,199		$	159,916		$	92,829
Net interest income	$	101,669	$	94,895		$	294,017		$	279,046
Provision for loan losses		2,920		3,883			17,398			11,398
Provision for loan losses - acquisition day 1 non-PCD		-		8,750			-			8,750
Total provision for loan losses	$	2,920	$	12,633		$	17,398		$	20,148
Net interest income after provision for loan losses	$	98,749	$	82,262		$	276,619		$	258,898
Noninterest income
Service charges on deposit accounts	$	4,340	$	3,979		$	12,676		$	11,260
Card services income		5,897		5,503			16,679			15,469
Retirement plan administration fees		14,578		12,798			43,663			35,995
Wealth management		10,929		9,297			30,799			25,611
Insurance services		4,913		4,361			13,149			12,008
Bank owned life insurance income		1,868		1,568			6,054			4,974
Net securities gains (losses)		476		(183	)		2,567			(9,822	)
Other		2,773		2,913			8,811			8,195
Total noninterest income	$	45,774	$	40,236		$	134,398		$	103,690
Noninterest expense
Salaries and employee benefits	$	59,641	$	49,248		$	170,738		$	144,237
Technology and data services		9,920		9,677			28,919			27,989
Occupancy		7,754		7,090			23,523			21,233
Professional fees and outside services		4,871		4,149			14,289			12,486
Amortization of intangible assets		2,062		1,609			6,363			2,603
Reserve for unfunded loan commitments		250		460			(580	)		(270	)
Acquisition expenses		543		7,917			543			9,724
Other		10,704		10,647			33,311			30,911
Total noninterest expense	$	95,745	$	90,797		$	277,106		$	248,913
Income before income tax expense	$	48,778	$	31,701		$	133,911		$	113,675
Income tax expense		10,681		7,095			29,275			25,339
Net income	$	38,097	$	24,606		$	104,636		$	88,336
Earnings Per Share
Basic	$	0.81	$	0.54		$	2.22		$	2.02
Diluted	$	0.80	$	0.54		$	2.21		$	2.01

NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, in thousands except per share data)
		2024								2023
	3rd Q		2nd Q			1st Q			4th Q		3rd Q
Interest, fee and dividend income
Interest and fees on loans	$	141,991	$	136,606		$	133,146		$	132,738	$	122,097
Securities available for sale		7,815		7,562			7,124			7,208		7,495
Securities held to maturity		5,042		5,190			5,303			5,374		5,281
Other		1,382		1,408			1,364			5,594		2,221
Total interest, fee and dividend income	$	156,230	$	150,766		$	146,937		$	150,914	$	137,094
Interest expense
Deposits	$	49,106	$	46,688		$	44,339		$	42,753	$	30,758
Short-term borrowings		1,431		2,899			3,421			4,951		7,612
Long-term debt		292		291			290			294		294
Subordinated debt		1,810		1,806			1,800			1,795		1,612
Junior subordinated debt		1,922		1,908			1,913			1,948		1,923
Total interest expense	$	54,561	$	53,592		$	51,763		$	51,741	$	42,199
Net interest income	$	101,669	$	97,174		$	95,174		$	99,173	$	94,895
Provision for loan losses	$	2,920	$	8,899		$	5,579		$	5,126	$	3,883
Provision for loan losses - acquisition day 1 non-PCD		-		-			-			-		8,750
Total provision for loan losses	$	2,920	$	8,899		$	5,579		$	5,126	$	12,633
Net interest income after provision for loan losses	$	98,749	$	88,275		$	89,595		$	94,047	$	82,262
Noninterest income
Service charges on deposit accounts	$	4,340	$	4,219		$	4,117		$	4,165	$	3,979
Card services income		5,897		5,587			5,195			5,360		5,503
Retirement plan administration fees		14,578		14,798			14,287			11,226		12,798
Wealth management		10,929		10,173			9,697			9,152		9,297
Insurance services		4,913		3,848			4,388			3,659		4,361
Bank owned life insurance income		1,868		1,834			2,352			1,776		1,568
Net securities gains (losses)		476		(92	)		2,183			507		(183	)
Other		2,773		2,865			3,173			2,643		2,913
Total noninterest income	$	45,774	$	43,232		$	45,392		$	38,488	$	40,236
Noninterest expense
Salaries and employee benefits	$	59,641	$	55,393		$	55,704		$	50,013	$	49,248
Technology and data services		9,920		9,249			9,750			10,174		9,677
Occupancy		7,754		7,671			8,098			7,175		7,090
Professional fees and outside services		4,871		4,565			4,853			5,115		4,149
Amortization of intangible assets		2,062		2,133			2,168			2,131		1,609
Reserve for unfunded loan commitments		250		(380	)		(450	)		300		460
Impairment of a minority interest equity investment		-		-			-			4,750		-
Acquisition expenses		543		-			-			254		7,917
Other		10,704		10,957			11,650			12,839		10,647
Total noninterest expense	$	95,745	$	89,588		$	91,773		$	92,751	$	90,797
Income before income tax expense	$	48,778	$	41,919		$	43,214		$	39,784	$	31,701
Income tax expense		10,681		9,203			9,391			9,338		7,095
Net income	$	38,097	$	32,716		$	33,823		$	30,446	$	24,606
Earnings Per Share
Basic	$	0.81	$	0.69		$	0.72		$	0.65	$	0.54
Diluted	$	0.80	$	0.69		$	0.71		$	0.64	$	0.54

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
		Q3 - 2024				Q2 - 2024				Q1 - 2024				Q4 - 2023				Q3 - 2023
Assets
Short-term interest-bearing accounts		$	62,210	4.87	%	$	48,861	5.48	%	$	47,972	4.48	%	$	319,907	5.59	%	$	121,384	4.26	%
Securities taxable(1)			2,266,930	1.99	%		2,280,767	1.97	%		2,278,029	1.91	%		2,310,409	1.88	%		2,364,809	1.90	%
Securities tax-exempt(1)(5)			217,251	3.47	%		226,032	3.56	%		230,468	3.58	%		232,575	3.51	%		219,427	3.34	%
FRB and FHLB stock			35,395	6.97	%		40,283	7.41	%		42,296	7.89	%		47,994	8.98	%		53,841	6.76	%
Loans(1)(6)			9,865,412	5.74	%		9,772,014	5.63	%		9,674,892	5.54	%		9,653,191	5.47	%		9,043,582	5.36	%
Total interest-earning assets		$	12,447,198	5.01	%	$	12,367,957	4.92	%	$	12,273,657	4.84	%	$	12,564,076	4.79	%	$	11,803,043	4.63	%
Other assets			1,072,277				1,064,487				1,055,386				1,052,024				968,220
Total assets		$	13,519,475			$	13,432,444			$	13,329,043			$	13,616,100			$	12,771,263
Liabilities and stockholders' equity
Money market deposit accounts		$	3,342,845	3.68	%	$	3,254,252	3.65	%	$	3,129,160	3.56	%	$	3,045,531	3.43	%	$	2,422,451	2.91	%
NOW deposit accounts			1,600,547	0.87	%		1,603,695	0.78	%		1,600,288	0.75	%		1,645,401	0.80	%		1,513,420	0.57	%
Savings deposits			1,566,316	0.05	%		1,586,753	0.05	%		1,607,659	0.04	%		1,666,915	0.04	%		1,707,094	0.04	%
Time deposits			1,442,424	4.00	%		1,391,062	4.00	%		1,352,559	4.00	%		1,343,548	3.81	%		1,178,352	3.60	%
Total interest-bearing deposits		$	7,952,132	2.46	%	$	7,835,762	2.40	%	$	7,689,666	2.32	%	$	7,701,395	2.20	%	$	6,821,317	1.79	%
Federal funds purchased			2,609	5.34	%		29,945	5.56	%		19,769	5.53	%		217	5.48	%		6,033	5.39	%
Repurchase agreements			98,035	2.80	%		86,405	1.55	%		82,419	1.55	%		82,387	1.59	%		71,516	1.40	%
Short-term borrowings			48,875	5.74	%		155,159	5.58	%		213,390	5.34	%		345,250	5.31	%		540,380	5.34	%
Long-term debt			29,696	3.91	%		29,734	3.94	%		29,772	3.92	%		29,809	3.91	%		29,800	3.91	%
Subordinated debt, net			120,594	5.97	%		120,239	6.04	%		119,873	6.04	%		119,531	5.96	%		109,160	5.86	%
Junior subordinated debt			101,196	7.56	%		101,196	7.58	%		101,196	7.60	%		101,196	7.64	%		101,196	7.54	%
Total interest-bearing liabilities		$	8,353,137	2.60	%	$	8,358,440	2.58	%	$	8,256,085	2.52	%	$	8,379,785	2.45	%	$	7,679,402	2.18	%
Demand deposits			3,389,894				3,323,906				3,356,607				3,535,815				3,498,424
Other liabilities			292,446				306,747				286,749				326,857				287,751
Stockholders' equity			1,483,998				1,443,351				1,429,602				1,373,643				1,305,686
Total liabilities and stockholders' equity		$	13,519,475			$	13,432,444			$	13,329,043			$	13,616,100			$	12,771,263
Interest rate spread				2.41	%			2.34	%			2.32	%			2.34	%			2.45	%
Net interest margin (FTE)(1)				3.27	%			3.18	%			3.14	%			3.15	%			3.21	%

NBT Bancorp Inc. and Subsidiaries
Average Year-to-Date Balance Sheets
(unaudited, dollars in thousands)
		Average						Yield/		Average						Yield/
		Balance			Interest			Rates		Balance			Interest			Rates
Nine Months Ended September 30,			2024								2023
Assets
Short-term interest-bearing accounts		$	53,048		$	1,963		4.94	%	$	61,677		$	1,751		3.80	%
Securities taxable(1)			2,275,212			33,336		1.96	%		2,400,237			34,218		1.91	%
Securities tax-exempt(1)(5)			224,557			5,950		3.54	%		207,812			4,675		3.01	%
FRB and FHLB stock			39,310			2,191		7.45	%		48,860			2,282		6.24	%
Loans(1)(6)			9,771,118			412,448		5.64	%		8,516,793			330,314		5.19	%
Total interest-earning assets		$	12,363,245		$	455,888		4.93	%	$	11,235,379		$	373,240		4.44	%
Other assets			1,064,080								880,655
Total assets		$	13,427,325							$	12,116,034
Liabilities and stockholders' equity
Money market deposit accounts		$	3,242,453		$	88,185		3.63	%	$	2,207,126		$	36,107		2.19	%
NOW deposit accounts			1,601,507			9,630		0.80	%		1,525,089			4,989		0.44	%
Savings deposits			1,586,834			541		0.05	%		1,732,205			462		0.04	%
Time deposits			1,395,520			41,777		4.00	%		893,407			20,330		3.04	%
Total interest-bearing deposits		$	7,826,314		$	140,133		2.39	%	$	6,357,827		$	61,888		1.30	%
Federal funds purchased			17,387			721		5.54	%		32,784			1,266		5.16	%
Repurchase agreements			88,986			1,340		2.01	%		66,162			416		0.84	%
Short-term borrowings			138,812			5,690		5.48	%		485,804			18,975		5.22	%
Long-term debt			29,734			873		3.92	%		22,373			631		3.77	%
Subordinated debt, net			120,237			5,416		6.02	%		101,114			4,281		5.66	%
Junior subordinated debt			101,196			5,743		7.58	%		101,196			5,372		7.10	%
Total interest-bearing liabilities		$	8,322,666		$	159,916		2.57	%	$	7,167,260		$	92,829		1.73	%
Demand deposits			3,356,923								3,439,275
Other liabilities			295,303								271,307
Stockholders' equity			1,452,433								1,238,192
Total liabilities and stockholders' equity		$	13,427,325							$	12,116,034
Net interest income (FTE)(1)					$	295,972							$	280,411
Interest rate spread								2.36	%							2.71	%
Net interest margin (FTE)(1)								3.20	%							3.34	%
Taxable equivalent adjustment					$	1,955							$	1,365
Net interest income					$	294,017							$	279,046

(1)	The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
	Non-GAAP measures
	(unaudited, dollars in thousands except per share data)
			2024									2023
		3rd Q			2nd Q			1st Q			4th Q			3rd Q
	Operating net income
	Net income	$	38,097		$	32,716		$	33,823		$	30,446		$	24,606
	Acquisition expenses		543			-			-			254			7,917
	Acquisition-related provision for credit losses		-			-			-			-			8,750
	Acquisition-related reserve for unfunded loan commitments		-			-			-			-			836
	Impairment of a minority interest equity investment		-			-			-			4,750			-
	Securities (gains) losses		(476	)		92			(2,183	)		(507	)		183
	Adjustments to net income	$	67		$	92		$	(2,183	)	$	4,497		$	17,686
	Adjustments to net income (net of tax)	$	52		$	72		$	(1,703	)	$	3,435		$	13,730
	Operating net income	$	38,149		$	32,788		$	32,120		$	33,881		$	38,336
	Operating diluted earnings per share	$	0.80		$	0.69		$	0.68		$	0.72		$	0.84
		9 Months Ended September 30,
			2024			2023
	Operating net income
	Net income	$	104,636		$	88,336
	Acquisition expenses		543			9,724
	Acquisition-related provision for credit losses		-			8,750
	Acquisition-related reserve for unfunded loan commitments		-			836
	Securities (gains) losses		(2,567	)		9,822
	Adjustments to net income	$	(2,024	)	$	29,132
	Adjustments to net income (net of tax)	$	(1,579	)	$	22,577
	Operating net income	$	103,057		$	110,913
	Operating diluted earnings per share	$	2.17		$	2.53
			2024									2023
		3rd Q			2nd Q			1st Q			4th Q			3rd Q
	FTE adjustment
	Net interest income	$	101,669		$	97,174		$	95,174		$	99,173		$	94,895
	Add: FTE adjustment		639			658			658			669			568
	Net interest income (FTE)	$	102,308		$	97,832		$	95,832		$	99,842		$	95,463
	Average earning assets	$	12,447,198		$	12,367,957		$	12,273,657		$	12,564,076		$	11,803,043
	Net interest margin (FTE)(3)		3.27	%		3.18	%		3.14	%		3.15	%		3.21	%
		9 Months Ended September 30,
			2024			2023
	FTE adjustment
	Net interest income	$	294,017		$	279,046
	Add: FTE adjustment		1,955			1,365
	Net interest income (FTE)	$	295,972		$	280,411
	Average earning assets	$	12,363,245		$	11,235,379
	Net interest margin (FTE)(3)		3.20	%		3.34	%
	Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.

(1)	The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:
	Non-GAAP measures (continued)
	(unaudited, dollars in thousands)
			2024									2023
		3rd Q			2nd Q			1st Q			4th Q			3rd Q
	Tangible equity to tangible assets
	Total equity	$	1,521,980		$	1,461,955		$	1,441,415		$	1,425,691		$	1,362,821
	Intangible assets		397,853			398,686			400,819			402,294			402,745
	Total assets	$	13,839,552		$	13,501,909		$	13,439,199		$	13,309,040		$	13,827,628
	Tangible equity to tangible assets		8.36	%		8.11	%		7.98	%		7.93	%		7.15	%
			2024									2023
		3rd Q			2nd Q			1st Q			4th Q			3rd Q
	Return on average tangible common equity
	Net income	$	38,097		$	32,716		$	33,823		$	30,446		$	24,606
	Amortization of intangible assets (net of tax)		1,547			1,600			1,626			1,599			1,206
	Net income, excluding intangibles amortization	$	39,644		$	34,316		$	35,449		$	32,045		$	25,812
	Average stockholders' equity	$	1,483,998		$	1,443,351		$	1,429,602		$	1,373,643		$	1,305,686
	Less: average goodwill and other intangibles		399,113			399,968			401,756			401,978			350,912
	Average tangible common equity	$	1,084,885		$	1,043,383		$	1,027,846		$	971,665		$	954,774
	Return on average tangible common equity(3)		14.54	%		13.23	%		13.87	%		13.08	%		10.73	%
		9 Months Ended September 30,
			2024			2023
	Return on average tangible common equity
	Net income	$	104,636		$	88,336
	Amortization of intangible assets (net of tax)		4,772			1,952
	Net income, excluding intangibles amortization	$	109,408		$	90,288
	Average stockholders' equity	$	1,452,433		$	1,238,192
	Less: average goodwill and other intangibles		400,275			309,309
	Average tangible common equity	$	1,052,158		$	928,883
	Return on average tangible common equity(3)		13.89	%		13.00	%
(2)	Non-GAAP measure - Stockholders' equity less goodwill and intangible assets divided by common shares outstanding.
(3)	Annualized.
(4)	Total past due loans, defined as loans 30 days or more past due and in an accrual status.
(5)	Securities are shown at average amortized cost.
(6)	For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.

This press release was published by a CLEAR® Verified individual.