NORWICH, N.Y. — NBT Bancorp, Inc. (NASDAQ: NBTB) recently reported that its net income rose more than 15 percent to $34.2 million, or 78 cents a share, in the fourth quarter from just under $29 million, or 66 cents, in the year-ago period. Higher net interest income and a lower provision for loan losses, partly […]
NORWICH, N.Y. — NBT Bancorp, Inc. (NASDAQ: NBTB) recently reported that its net income rose more than 15 percent to $34.2 million, or 78 cents a share, in the fourth quarter from just under $29 million, or 66 cents, in the year-ago period.
Higher net interest income and a lower provision for loan losses, partly offset by branch-optimization charges, led the increase, NBT Bancorp, parent of NBT Bank, said in its Jan. 27 earnings report. Excluding branch-optimization charges for the quarter of $4.1 million, NBT said its net income and earnings per share were $37.4 million and 85 cents a share, respectively.
NBT’s net income for the full-year 2020 was $104.4 million, or $2.37 per share, down almost 14 percent from $121 million, or $2.74 a share in the prior year. That was due primarily to a higher provision for loan losses after the adoption of the current expected credit losses (CECL) accounting methodology and the worsening economic conditions caused by the COVID-19 pandemic, the banking company explained.
Excluding full-year branch-optimization charges of $4.8 million, net income and earnings per share were $108.1 million and $2.46 a share, respectively, it added.
“NBT ended the year with active pipelines and building momentum. Our strong capital base provides us with the optionality we need to drive our growth in 2021,” NBT President and CEO John H. Watt, Jr. said in the earnings report. “The strength of NBT’s pre-provision net revenue and our outsized noninterest income is reflected in our results for the full year and the fourth quarter of 2020. As we continue to navigate these challenging times and look to the future, our team is customer focused and committed to executing the critical strategies that will carry us forward.”
NBT had total loans of $7.5 billion as of Dec. 31, up from $7.1 billion a year ago.
The banking company’s Paycheck Protection Program loans as of Dec. 31, 2020 totaled $431 million (net of unamortized fees), with $548 million originated at an average loan size of $184,000 and an average annual fee of 3.2 percent.
Net charge-offs to average loans were low due to COVID-19 pandemic-relief programs for the quarter and 2020, NBT said. Net charge-offs to total average loans were 0.23 percent for 2020, compared to 0.36 percent for 2019.
NBT Bancorp is a financial holding company based in Norwich, with total assets of $10.9 billion as of Dec. 31. The company primarily operates through NBT Bank, N.A., a full-service community bank and via two financial-services companies. NBT Bank has 141 branches in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine, and is currently entering Connecticut. EPIC Retirement Plan Services, based in Rochester, is a full-service 401(k) plan recordkeeping firm. NBT Insurance Agency, LLC, based in Norwich, is a full-service insurance agency.