NORWICH, N.Y. — NBT Bancorp, Inc. (NASDAQ: NBTB) reported net income of $33.7 million, or 78 cents per share, in the first quarter of 2023, down nearly 14 percent from $39.1 million, or 90 cents, in the year-ago quarter due to securities losses and acquisition expenses. “NBT’s first-quarter results reflect the strength of our balance […]
NORWICH, N.Y. — NBT Bancorp, Inc. (NASDAQ: NBTB) reported net income of $33.7 million, or 78 cents per share, in the first quarter of 2023, down nearly 14 percent from $39.1 million, or 90 cents, in the year-ago quarter due to securities losses and acquisition expenses.
“NBT’s first-quarter results reflect the strength of our balance sheet and our consistent and traditional banking franchise,” John H. Watt, Jr., NBT’s president and CEO, said in his company’s April 24 earnings report. “During a quarter characterized by heightened market volatility, we grew loans and deposits, maintained strong asset quality, increased our capital position, and continued to deliver high-quality and timely customer service.”
During the quarter, shareholders of Connecticut–based Salisbury Bancorp, Inc. (NASDAQ: SAL) approved NBT’s plan to acquire the banking company in an equity transaction valued at $204 million.
“The merger is expected to close late in the second quarter, subject to customary closing conditions, including receipt of required regulatory approvals,” Watt said. NBT incurred about $600,000 in acquisition expenses during the quarter.
NBT Bancorp recorded a $5 million securities loss on the write-off of a subordinated debt security of a failed bank in the first quarter. In March, both Signature Bank in New York and Silicon Valley Bank in California failed.
NBT also recorded a higher provision for loan losses at $3.9 million, up from $600,000 for the same quarter a year ago.
The Paycheck Protection Program, enacted during the COVID-19 pandemic, netted $2 million of income for NBT during the quarter, which also saw an 18 percent increase in net interest income to $95.1 million due to higher yields on earning assets.
NBT’s net interest income was $95.1 million in the first quarter, up 18.3 percent from $80.3 million for the same quarter a year ago. Noninterest income was $31.4 million, down from $42.7 million a year ago.
Total loans, at $8.26 billion, were up from $7.6 million a year ago, and total deposits were $9.68 billion, down from $10.5 billion a year prior, but up from $9.5 billion at the end of 2022.
Norwich–based NBT Bancorp is a financial holding company that operates NBT Bank, N.A., a full-service bank with 140 branches; as well as Rochester–based EPIC Retirement Plan Services, a benefits-administration firm; and NBT Insurance Agency, a full-service insurance agency. It has about total $11.8 billion in assets.
