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NBT Bancorp Announces Quarterly Earnings of $11.8 Million; Declares Cash Dividend

10/27/03

NORWICH, N.Y.--(BUSINESS WIRE)--Oct. 27, 2003--NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the quarter ended September 30, 2003 was $11.8 million, or $0.36 per diluted share, up 6% from $11.4 million, or $0.34 per diluted share for the same period a year ago. Return on average assets and return on average equity were 1.21% and 16.06%, respectively, for the quarter ended September 30, 2003, compared with 1.23% and 15.95%, respectively, for the same period in 2002. The increase in net income for the quarter ended September 30, 2003 was primarily the result of a $1.9 million increase in noninterest income that was partially offset by a $1.3 million decrease in net interest income.

Net income for the nine months ended September 30, 2003 was $35.2 million, or $1.07 per diluted share, up 6% compared with $33.8 million or $1.01 per diluted share for the first nine months of 2002. Return on average assets and return on average equity were 1.24% and 16.09%, respectively, for the nine months ended September 30, 2003, compared with 1.24% and 16.37%, respectively, for the same period in 2002. The increase in net income for the nine months ended September 30, 2003 was primarily the result of a $4.4 million increase in noninterest income that was partially offset by a $3.2 million decrease in net interest income.

NBT Chairman, President and CEO Daryl R. Forsythe stated, "We are pleased with our performance for the third quarter and for the year thus far. In spite of the challenging interest rate environment and economic conditions that have been less than robust, we achieved solid earnings from strong growth in noninterest income and loans, improved asset quality and effective expense control. Our continued focus on growing customer relationships and providing the highest level of customer service underscores our strong commitment to the fundamentals of community banking."

    Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at September 30, 2003 were $16.5 million or 0.65% of total loans and leases compared with $30.7 million or 1.30% of total loans and leases at September 30, 2002 and $26.4 million or 1.12% of total loans and leases at December 31, 2002. The Company's allowance for loan and lease losses was 1.63% of loans and leases at September 30, 2003 compared to 1.83% at September 30, 2002 and 1.70% at December 31, 2002. The ratio of the allowance for loan and lease losses to nonperforming loans improved to 253.05% at September 30, 2003 from 141.00% at September 30, 2002 and 152.18% at December 31, 2002. Annualized net charge-offs to average loans and leases for the nine months ended September 30, 2003, were 0.24%, down from the 0.46% annualized ratio for the nine months ended September 30, 2002, and down from the ratio for the year ended December 31, 2002 of 0.58%. Mr. Forsythe commented, "I am extremely pleased with the positive loan quality trends over the last several quarters. Our team has worked hard to integrate previous acquisitions and reduce the overall level of nonperforming loans. We are focused on continuing to grow the loan portfolio while maintaining a high standard of quality."

For the quarter and nine months ended September 30, 2003, the provision for loan and lease losses totaled $2.4 million and $5.8 million, respectively, compared with the $2.4 million and $6.5 million for the same periods in 2002. The provision for the quarter ended September 30, 2003 remained relatively unchanged when compared with the same period in the prior year and was higher than the previous two quarters of the current fiscal year, due mainly to strong loan growth. The decrease in the provision for loan and lease losses for the nine months ended September 30, 2003 when compared with the same period in 2002 was due primarily to lower net charge-offs and a decrease in nonperforming loans.

Net Interest Income

Net interest income was down 4% to $35.4 million for the quarter ended September 30, 2003, compared to $36.7 million for the same period a year ago. The decrease in net interest income was attributable to the decline in the Company's net interest margin, which was 4.00% for the quarter ended September 30, 2003, down from the 4.35% for the same period in 2002. Net interest income for the nine months ended September 30, 2003 decreased 3% to $106.9 million from $110.1 million in the same period for 2002. The Company's net interest margin was 4.19% for the nine months ended September 30, 2003 compared to 4.47% for the same period a year ago. The compression of net interest margin during the nine months and quarter ended September 30, 2003 compared to the same periods last year resulted from earning assets repricing down at a faster rate than interest-bearing liabilities. This net interest margin compression was also affected by a high level of prepayments from mortgage-related loans and securities, the proceeds of which were reinvested at lower rates. Additionally, prepayments from mortgage-related securities accelerated the rate of amortization of premiums during quarter ended September 30, 2003, resulting in a lower net interest margin.

Noninterest Income

Noninterest income for the quarter ended September 30, 2003 was $10.0 million, up $1.9 million or 24% from $8.0 million for the same period in 2002. Service charges on deposit accounts for the quarter ended September 30, 2003 increased $0.6 million or 18% over the same period in 2002. The increase in service charges on deposit accounts resulted primarily from higher overdraft fees. The increase in overdraft fees was driven primarily by the combination of continued growth in core deposit products as well as several pricing adjustments implemented during 2002 and 2003. Broker/dealer and insurance revenue increased $0.4 million or 27% for the quarter ended September 30, 2003 over the same period in 2002, driven by the Company's initiative to offer these products throughout the Bank branch network, this initiative was implemented at the end of 2002. Income from bank owned life insurance (BOLI) increased $0.4 million for the quarter ended September 30, 2003 over the same period in the prior year resulting from the purchase of $30 million in BOLI in June 2003.

Noninterest income for the nine months ended September 30, 2003 was $27.7 million, up $4.4 million or 19% from $23.3 million for the same period in 2002. Service charges on deposit accounts for the nine months ended September 30, 2003 increased $1.7 million or 17% over the same period in 2002. The increase in service charges on deposit accounts resulted primarily from higher revenue collected for overdraft fees and continued growth in core deposits. Other income for the nine months ended September 30, 2003 increased $0.8 million or 12% over the same period in 2002. The increase in other income was driven primarily by strong growth in ATM fees. Securities transactions resulted in a $0.1 million net gain for the nine months ended September 30, 2003 and a $0.4 million net loss for the same period in 2002 primarily as a result of a write-down of an impaired security. Also, broker/dealer and insurance revenue increased $0.5 million or 12%, due primarily to the previously mentioned initiative related to the sale of these products throughout the Bank's 111-branch network. Revenue from trust services increased $0.6 million or 25% for the nine months ended September 30, 2003 over the same period in 2002, due in part to higher fees collected for estate management services as well as an increase in assets under management resulting from improved stock market conditions and an increase in the number of managed trust accounts.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2003 was $25.8 million, up $0.5 million or 2% from $25.3 million for the same period in 2002. The increase in noninterest expense resulted primarily from an increase in salaries and benefits of $0.8 million. The increase in salaries and benefits was driven primarily by higher salaries expense resulting from an increase in full-time-equivalent employees and merit increases.

Noninterest expense for the nine months ended September 30, 2003 was $77.5 million, up $0.9 million or 1% from $76.6 million for the same period in 2002. The increase in noninterest expense was due primarily to increases in other operating expense, salaries and employee benefits and occupancy expense partially offset by decreases in loan collection and OREO expenses and professional fees and outside services. Other operating expense increased $1.4 million, primarily from a $0.6 million charge for the writedown of venture capital investments and increased insurance costs. Loan collection and OREO expenses decreased $1.0 million from gains on the sale of OREO and a decrease in nonperforming loans. Professional fees and outside services decreased $0.9 million primarily from a $0.4 million charge related to an adverse judgement against the Company in 2002 as well as legal fees incurred during 2002 for the recovery of deposit overdraft writeoffs.

Balance Sheet

Total assets were $4.0 billion at September 30, 2003 up $0.3 billion from $3.7 billion at September 30, 2002. Loans and leases increased $0.2 billion or 8% from $2.4 billion at September 30, 2002 to $2.6 billion at September 30, 2003. Loan growth has increased at an annual rate of 11% from December 31, 2002 levels. Loan growth was fueled primarily by consumer loans and residential real estate, which experienced strong growth during the second and third quarters of 2003. Total deposits were $3.0 billion at September 30, 2003, up $0.1 billion from $2.9 billion at September 30, 2002. Core deposits, which include checking, savings and money market accounts increased $0.2 billion or 15% from $1.6 billion at September 30, 2002 to $1.8 billion at September 30, 2003 offset by a $0.2 billion decrease in time deposits during the same period. Stockholders' equity was $304.7 million representing a Tier 1 leverage ratio of 6.77% at September 30, 2003 compared with $287.7 million or a Tier 1 leverage ratio of 6.60% at September 30, 2002.

Dividend Declared

The NBT Board of Directors declared a third quarter cash dividend of $0.17 per share at a meeting held today. The dividend will be paid on December 15, 2003 to shareholders of record as of December 1, 2003.

Corporate Overview

NBT is a financial services holding company headquartered in Norwich, NY, with combined assets of $4.0 billion at September 30, 2003. The Company primarily operates through one full-service community bank with three geographic divisions and through a financial services company. NBT Bank, N.A. has 111 locations, including 44 NBT Bank offices and 27 Central National Bank offices in upstate New York and 40 Pennstar Bank offices in northeastern Pennsylvania. Mr. Forsythe commented "On October 6, 2003, we opened our 111th full service office, located in Guilderland, New York. This opening of this Central National Bank location expands our presence in the Capital Region to six branches. We are excited about the opportunity to offer our brand of community banking to a larger customer base in this important market." NBT also provides financial services products through M. Griffith, Inc. More information about NBT's banking divisions can be found on the Internet at www.nbtbank.com, www.pennstarbank.com and www.canajocnb.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 Inc. 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 undertake to update forward-looking statements to reflect subsequent circumstances or events.

                           NBT Bancorp Inc.
                     SELECTED FINANCIAL HIGHLIGHTS
                              (unaudited)
                                                        Net    Percent
                              2003         2002        Change  Change
                              ----         -----       ------  -------
                     (dollars in thousands, except
                       share and per share data)

Three Months Ended September 30,

Net Income                 $11,848       $11,412          $436      4%
Diluted Earnings Per Share   $0.36         $0.34         $0.02      6%
Weighted Average
 Diluted Common Shares
 Outstanding            32,864,477    33,294,750      (430,273)    -1%
Return on Average Assets      1.21%         1.23%        -0.02%    -2%
Return on Average Equity     16.06%        15.95%         0.11%     1%
Net Interest Margin           4.00%         4.35%        -0.35%    -8%
----------------------------------------------------------------------

Nine Months Ended September 30,

Net Income                 $35,222       $33,755        $1,467      4%
Diluted Earnings Per Share   $1.07         $1.01         $0.06      6%
Weighted Average
 Diluted Common Shares
 Outstanding            32,767,180    33,330,096      (562,916)    -2%
Return on Average Assets      1.24%         1.24%         0.00%     0%
Return on Average Equity     16.09%        16.37%        -0.28%    -2%
Net Interest Margin           4.19%         4.47%        -0.28%    -6%
----------------------------------------------------------------------

----------------------------------------------------------------------
Asset Quality         September 30,  December 31,  September 30,
                           2003          2002          2002
                          ------        ------       -------
Nonaccrual Loans           $15,274       $24,009       $29,481
90 Days Past Due and
 Still Accruing             $1,194        $1,976          $838
Troubled Debt Restructuring
 Loans                          $0          $409          $412
Total Nonperforming
 Loans                     $16,468       $26,394       $30,731
Other Real Estate
 Owned (OREO)               $1,871        $2,947        $3,092
Total Nonperforming
 Loans and OREO            $18,339       $29,341       $33,823
Nonperforming Securities      $619        $1,122        $1,312
Total Nonperforming
 Assets                    $18,958       $30,463       $35,135
Allowance for Loan
 and Lease Losses          $41,672       $40,167       $43,330
Year-to-Date (YTD)
 Net Charge-Offs            $4,284       $13,652        $7,943
Allowance to Loans
 and Leases                   1.63%         1.70%         1.83%
Total Nonperforming
 Loans to Loans and Leases    0.65%         1.12%         1.30%
Total Nonperforming
 Assets to Assets             0.47%         0.82%         0.94%
Allowance to
 Nonperforming Loans        253.05%       152.18%       141.00%
Annualized Net Charge-Offs
 to YTD Average Loans
 and Leases                   0.24%         0.58%         0.46%
----------------------------------------------------------------------

Capital
Equity to Assets              7.53%         7.85%         7.71%
Book Value Per Share         $9.32         $8.96         $8.79
Tangible Book Value
 Per Share                   $7.79         $7.47         $7.31
Tier 1 Leverage Ratio         6.77%         6.73%         6.60%
Tier 1 Capital Ratio          9.78%         9.93%         9.74%
Total Risk-Based
 Capital Ratio               11.03%        11.18%        10.98%
----------------------------------------------------------------------

---------------------------------------------------------------
Quarterly Common
 Stock Price(a)

Quarter End           2003                2002               2001
                  High     Low       High     Low       High      Low
                  ----     ---       ----     ---       ----      ---
March 31         $18.60   $16.76    $15.15   $13.15    $17.50   $13.25
June 30           19.94    17.37     19.32    14.00     25.42(b) 14.30
September 30      21.76    19.24     18.50    16.36     17.30    13.50
December 31                          18.60    14.76     15.99    12.55
----------------------------------------------------------------------
(a) historical NBT Bancorp Inc. only

(b) This price was reported on June 29, 2001, a day on which the
Nasdaq Stock Market experienced computerized trading disruptions
which, among other things, forced it to extend its regular trading
session and cancel its late trading session.  Subsequently the Nasdaq
Stock Market recalculated and republished several closing stock prices
(not including NBT Bancorp Inc., for which had reported a closing
price of $19.30). Excluding trading on June 29, 2001, the high sales
price for the quarter ended June 30, 2001 was $16.75.


                           NBT Bancorp Inc.
                     SELECTED FINANCIAL HIGHLIGHTS
                              (unaudited)
                                                        Net    Percent
                               2003        2002        Change   Change
                               ----        ----        ------  -------
                       (dollars in thousands, except
                        share and per share data)
Balance Sheet as of September 30,

Loans & Leases               $2,550,466  $2,367,688    $182,778     8%
Earning Assets               $3,743,218  $3,450,443    $292,775     8%
Total Assets                 $4,047,237  $3,729,947    $317,290     9%
Deposits                     $2,971,049  $2,921,965     $49,084     2%
Stockholders' Equity           $304,690    $287,652     $17,038     6%
----------------------------------------------------------------------

Average Balances
Quarter Ended September 30,
Loans & Leases               $2,527,099  $2,350,015    $177,084     8%
Securities AFS (excluding
 unrealized gains or losses)   $966,254    $965,055      $1,199     0%
Securities HTM                  $99,812     $86,840     $12,972    15%
Trading Securities                  $69        $260       ($191)  -73%
Regulatory Equity Investment    $29,469     $22,718      $6,751    30%
Short-Term Interest Bearing
 Accounts                        $1,573     $15,374    ($13,801)  -90%
Total Earning Assets         $3,624,276  $3,440,262    $184,014     5%
Total Assets                 $3,902,609  $3,683,209    $219,400     6%
Interest Bearing Deposits    $2,491,467  $2,457,053     $34,414     1%
Non-Interest Bearing Deposits  $469,432    $426,733     $42,699    10%
Short-Term Borrowings          $212,568    $106,018    $106,550   101%
Long-Term Borrowings           $369,843    $350,650     $19,193     5%
Trust Preferred Debentures(a)   $17,000          $0     $17,000     -
Total Interest Bearing
 Liabilities                 $3,090,878  $2,913,721    $177,157     6%
Stockholders' Equity           $292,886    $283,810      $9,076     3%
----------------------------------------------------------------------

Average Balances
Nine Months Ended September 30,
Loans & Leases               $2,433,665  $2,330,096    $103,569     4%
Securities AFS (excluding
 unrealized gains or losses)   $973,318    $939,634     $33,684     4%
Securities HTM                  $88,923     $96,009     ($7,086)   -7%
Trading Securities                 $157        $198        ($41)  -21%
Regulatory Equity Investment    $25,668     $21,582      $4,086    19%
Short-Term Interest Bearing
 Accounts                        $3,549     $13,584    ($10,035)  -74%
Total Earning Assets         $3,525,280  $3,401,103    $124,177     4%
Total Assets                 $3,791,955  $3,636,846    $155,109     4%
Interest Bearing Deposits    $2,482,195  $2,470,560     $11,635     0%
Non-Interest Bearing Deposits  $449,520    $415,033     $34,487     8%
Short-Term Borrowings          $145,038     $89,521     $55,517    62%
Long-Term Borrowings           $357,967    $329,623     $28,344     9%
Trust Preferred Debentures(a)    $5,610          $0      $5,610     -
Total Interest Bearing
 Liabilities                 $2,990,810  $2,889,704    $101,106     3%
Stockholders' Equity           $293,364    $276,305     $17,059     6%
----------------------------------------------------------------------

(a) - The Company adopted Statement of Financial Accounting Standards
(SFAS) No. 150, "Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity" on July 1, 2003. The
adoption of SFAS No. 150 resulted in the reclassification of $17
million of guaranteed preferred beneficial interests in the Company's
junior subordinated debentures from minority interest to liabilities.
This standard is applied on a prospective basis, accordingly, interest
cost associated with these debentures is classified as interest
expense for the quarter ended September 30, 2003 and is classified as
capital securities expense as a component of noninterest expense for
the first two quarters of 2003.


NBT Bancorp Inc. and Subsidiaries     September   December   September
Consolidated Balance                     30,        31,         30,
Sheets (Unaudited)                      2003       2002        2002
----------------------------------------------------------------------
(in thousands)

ASSETS
Cash and due from banks                $120,905   $121,824   $133,739
Short term interest bearing accounts      2,098      2,799      5,671
Trading securities, at fair value            57        203        237
Securities available for sale, at
 fair value                           1,076,053  1,007,583    993,786
Securities held to maturity (fair
 value of $99,020, $84,517, and
 $89,880, at September 30, 2003,
 December 31, 2002 and September 30,
 2002, respectively)                     97,499     82,514     87,272
Federal Reserve and Federal Home Loan
 Bank stock                              35,218     23,699     22,630
Loans and leases                      2,550,466  2,355,932  2,367,688
Less allowance for loan and
 lease losses                            41,672     40,167     43,330
----------------------------------------------------------------------
  Net loans and leases                2,508,794  2,315,765  2,324,358
Premises and equipment, net              61,857     61,261     61,193
Goodwill                                 47,521     46,121     46,121
Intangible assets, net                    2,474      2,246      2,413
Bank owned life insurance                30,412          -          -
Other assets                             64,349     59,711     52,527
----------------------------------------------------------------------
TOTAL ASSETS                         $4,047,237 $3,723,726 $3,729,947
----------------------------------------------------------------------

LIABILITIES, GUARANTEED PREFERRED
 BENEFICIAL INTERESTS IN COMPANY'S
 JUNIOR SUBORDINATE DEBENTURES AND CAPITAL
Deposits:
 Demand (noninterest bearing)          $482,703   $449,201   $452,250
 Savings, NOW, and money market       1,364,568  1,183,603  1,156,204
 Time                                 1,123,778  1,289,236  1,313,511
----------------------------------------------------------------------
  Total deposits                      2,971,049  2,922,040  2,921,965
Short-term borrowings                   331,964    105,601    113,242
Long-term debt                          369,721    345,475    350,603
Trust preferred debentures               17,000          -          -
Other liabilities                        52,813     41,228     39,485
----------------------------------------------------------------------
  Total liabilities                   3,742,547  3,414,344  3,425,295

Guaranteed preferred beneficial
 interests in Company's junior
 subordinated debentures                      -     17,000     17,000

Total stockholders' equity              304,690    292,382    287,652
----------------------------------------------------------------------

TOTAL LIABILITIES, GUARANTEED PREFERRED
 BENEFICIAL INTERESTS IN COMPANY'S
 JUNIOR SUBORDINATE DEBENTURES
 AND CAPITAL                         $4,047,237 $3,723,726 $3,729,947

----------------------------------------------------------------------

NBT Bancorp Inc. and Subsidiaries

                                 Three months ended  Nine months ended
Consolidated Statements of          September 30,       September 30,
 Income                            2003      2002     2003     2002
----------------------------------------------------------------------
(in thousands, except                        (Unaudited)
 per share data)

Interest, fee and dividend
 income:
Loans and leases                    $39,881 $41,970 $119,036 $125,587
Securities available for sale         9,871  13,778   32,540   42,075
Securities held to maturity             840   1,010    2,586    3,309
Other                                   196     253      854      852
----------------------------------------------------------------------
  Total interest, fee and
   dividend income                   50,788  57,011  155,016  171,823
----------------------------------------------------------------------
Interest expense:
Deposits                             10,920  15,748   35,572   49,004
Short-term borrowings                   704     417    1,363    1,052
Long-term debt                        3,586   4,139   10,982   11,633
Trust preferred debentures              181       -      181        -
----------------------------------------------------------------------
  Total interest expense             15,391  20,304   48,098   61,689
----------------------------------------------------------------------
Net interest income                  35,397  36,707  106,918  110,134
Provision for loan and lease losses   2,436   2,424    5,789    6,527
----------------------------------------------------------------------
Net interest income after
 provision for loan and
 lease losses                        32,961  34,283  101,129  103,607
----------------------------------------------------------------------
Noninterest income:
Trust                                   958     743    2,966    2,366
Service charges on deposit accounts   4,164   3,531   11,531    9,820
Broker/dealer and insurance revenue   1,763   1,393    4,905    4,371
Net securities gains (losses)            18      (6)      83     (439)
Bank owned life insurance               398       -      412        -
Other                                 2,672   2,380    7,757    7,136
----------------------------------------------------------------------
  Total noninterest income            9,973   8,041   27,654   23,254
----------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits       12,486  11,720   37,205   36,591
Office supplies and postage           1,104   1,116    3,188    3,240
Occupancy                             2,143   2,032    6,851    6,297
Equipment                             1,909   1,672    5,619    5,204
Professional fees and outside
 services                             1,421   1,446    3,963    4,843
Data processing and communications    2,640   2,705    8,081    7,868
Amortization of intangible assets       158     177      475      610
Loan collection and other real
 estate owned                           448     570    1,204    2,245
Capital securities                        -     221      370      667
Other operating                       3,493   3,661   10,586    9,029
----------------------------------------------------------------------
  Total noninterest expense          25,802  25,320   77,542   76,594
----------------------------------------------------------------------
Income before income taxes           17,132  17,004   51,241   50,267
Income taxes                          5,284   5,592   16,019   16,512
----------------------------------------------------------------------
   Net income                       $11,848 $11,412  $35,222  $33,755
----------------------------------------------------------------------
Earnings Per Share:
     Basic                            $0.36   $0.35    $1.08    $1.02
     Diluted                          $0.36   $0.34    $1.07    $1.01
----------------------------------------------------------------------
NBT Bancorp Inc. and Subsidiaries

Quarterly Consolidated            3Q      2Q      1Q      4Q      3Q
 Statements of Income            2003    2003    2003    2002    2002
----------------------------------------------------------------------
(in thousands, except per                     (Unaudited)
 share data)
Interest, fee and
 dividend income:
Loans and leases              $39,881 $39,540 $39,615  $41,598 $41,970
Securities available for sale   9,871  10,864  11,805   12,329  13,778
Securities held to maturity       840     857     889      951   1,010
Other                             196     332     326      521     253
----------------------------------------------------------------------
  Total interest, fee and
   dividend income             50,788  51,593  52,635   55,399  57,011
----------------------------------------------------------------------
Interest expense:
Deposits                       10,920  12,040  12,612   14,328  15,748
Short-term borrowings             704     370     289      282     417
Long-term debt                  3,586   3,691   3,705    4,103   4,139
Trust preferred debentures        181       -       -        -       -
----------------------------------------------------------------------
  Total interest expense       15,391  16,101  16,606   18,713  20,304
----------------------------------------------------------------------
Net interest income            35,397  35,492  36,029   36,686  36,707
Provision for loan and
 lease losses                   2,436   1,413   1,940    2,546   2,424
----------------------------------------------------------------------
Net interest income after
 provision for loan and
 lease losses                  32,961  34,079  34,089   34,140  34,283
----------------------------------------------------------------------
Noninterest income:
Trust                             958   1,116     892      860     743
Service charges on deposit
 accounts                       4,164   3,764   3,603    4,055   3,531
Broker/dealer and
 insurance fees                 1,763   1,750   1,392    1,409   1,393
Net securities gains (losses)      18      38      27       26     (6)
Bank owned life insurance         398      14       -        -       -
Other                           2,672   2,257   2,828    1,917   2,380
----------------------------------------------------------------------
  Total noninterest income      9,973   8,939   8,742    8,267   8,041
----------------------------------------------------------------------
Noninterest expense:
Salaries and employee
 benefits                      12,486  12,060  12,659   11,621  11,720
Office supplies and postage     1,104   1,011   1,073    1,206   1,116
Occupancy                       2,143   2,182   2,526    2,036   2,032
Equipment                       1,909   1,944   1,766    1,862   1,672
Professional fees and
 outside services               1,421   1,240   1,302    1,746   1,446
Data processing and
 communications                 2,640   2,720   2,721    2,725   2,705
Amortization of intangible
 assets                           158     155     162      164     177
Loan collection and other
 real estate owned                448     476     280      601     570
Capital securities                  -     179     191      172     221
Other operating                 3,493   3,881   3,212    3,728   3,661
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  Total noninterest expense    25,802  25,848  25,892   25,861  25,320
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Income before income taxes     17,132  17,170  16,939   16,546  17,004
Income taxes                    5,284   5,362   5,373    5,302   5,592
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   Net income                 $11,848 $11,808 $11,566  $11,244 $11,412
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Earnings per share:
   Basic                        $0.36   $0.36   $0.36    $0.34   $0.35
   Diluted                      $0.36   $0.36   $0.35    $0.34   $0.34
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    CONTACT: NBT Bancorp Inc., Norwich
             Daryl R. Forsythe or Michael J. Chewens
             607-337-6416

    SOURCE: NBT Bancorp Inc.
Copyright © 2018 - NBT Bancorp All Right Reserved.