NORWICH, N.Y. — The new federal tax law impacted NBT Bancorp Inc.’s (NASDAQ: NBTB) net-income figures in both the fourth quarter and all of 2017. NBT Bancorp reported net income of $17.6 million in the fourth quarter, down from $19.6 million in the same period a year ago. The parent company of NBT Bank generated […]
NORWICH, N.Y. — The new federal tax law impacted NBT Bancorp Inc.’s (NASDAQ: NBTB) net-income figures in both the fourth quarter and all of 2017.
NBT Bancorp reported net income of $17.6 million in the fourth quarter, down from $19.6 million in the same period a year ago. The parent company of NBT Bank generated earnings per share of 40 cents in the fourth quarter, off from 45 cents a share in the prior-year quarter.
NBT’s profit was reduced by taking an estimated $4.4 million, one-time, non-cash charge recorded in the provision for income taxes related to the federal Tax Cuts and Jobs Act of 2017. Without it, NBT Bancorp would have reported net income of $22 million, or 50 cents per share, up about 12 percent compared to the fourth quarter of 2016.
For the full year, NBT Bank reported net income of $82.2 million, or $1.87 per share, up from $78.4 million, or $1.80 a share, during 2016. Without the $4.4 million charge, NBT’s full-year net income would have been $86.6 million, or $1.97 per share, up about 10 percent from 2016.
NBT Bancorp “delivered strong results” in 2017, including “record” net income for the fifth straight year and a new annual earnings per share “record,” John H. Watt, Jr., president and CEO of NBT Bancorp, noted in the banking company’s earnings report. NBT added that the tax law would boost future earnings and allow it to make investments in its workforce, customer offerings, and community organizations.
“Tax reform has created an important opportunity for NBT to invest in our employees, the customer experience and our communities. Allocating resources to permanent wage increases, customer-facing technology and contributions to the organizations that serve our communities is in alignment with the intent of the tax reform act and, most important, it allows us to invest in enhancing our business, ultimately increasing the return to our shareholders,” said Watt.
Norwich–based NBT Bancorp had total assets of $9.1 billion as of Dec. 31, 2017. The banking company primarily operates through NBT Bank, N.A. and through two financial services companies — EPIC Advisors, Inc., a Rochester–based 401(k) plan recordkeeping firm, and Norwich–based NBT-Mang Insurance Agency. NBT Bank has 152 branches in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine.
Contact Reinhardt at ereinhardt@cnybj.com
