NBT Bancorp Inc. Announces 2013 First Quarter Earnings
NORWICH, N.Y.,
Reported results from the first quarter of 2013 include the impact of the acquisition of
Selected highlights for the first quarter of 2013 include:
- Completed the previously announced acquisition of Alliance on
March 8, 2013 , a$1.4 billion financial holding company headquartered inSyracuse, N.Y. - Net interest income was up 5.6% as compared to the first quarter of 2012:
- Despite the 22 basis point decline in net interest margin for the first quarter of 2013 from the first quarter of 2012, margin compression was offset primarily by strong loan growth in 2012.
- Noninterest income was up 9.4% as compared to the first quarter of 2012:
- Insurance and financial services revenue was up 12.0% over last year.
- Trust revenue was up 36.8% over last year.
"Our successful merger and simultaneous systems conversion with Alliance were the result of a great collaborative effort by employees of both banks," said NBT President and CEO
Loan Quality and Provision for Loan Losses
The Company recorded a provision for loan losses of
Nonperforming loans to total loans improved to 0.83% at
The allowance for loan losses totaled
Net Interest Income
Net interest income was
While the rate paid on interest bearing liabilities decreased 17 basis points, the yield on interest earning assets declined 36 basis points, resulting in margin compression for the three months ended
Noninterest Income
Noninterest income for the three months ended
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended
Balance Sheet
Total assets were
Stock Repurchase Program
The Company did not purchase any shares of its common stock during the three months ended
Dividend
The Company anticipates that the NBT Board of Directors will declare a regular 2013 second-quarter cash dividend at their next scheduled meeting, which will be held on
Corporate Overview
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
Non-GAAP Measures
This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in
NBT Bancorp Inc. and Subsidiaries | ||||
SELECTED FINANCIAL HIGHLIGHTS | ||||
(unaudited) | ||||
(dollars in thousands, except per share data) | ||||
Reconciliation of Non-GAAP Financial Measures: | ||||
Three Months Ended March 31, | 2013 | 2012 | ||
Reported net income (GAAP) | $7,649 | $13,650 | ||
Adj: Gain on sale of securities, net | (1,145) | (455) | ||
Adj: Prepayment penalty fee | -- | (750) | ||
Plus: Merger related expenses | 10,681 | 511 | ||
Total Adjustments | 9,536 | (694) | ||
Income tax effect on adjustments | 2,908 | (208) | ||
Core net income | $14,277 | $13,164 | ||
Selected Financial Ratios: | ||||
Net | Percent | |||
Three Months Ended March 31, | 2013 | 2012 | Change | Change |
Core Diluted Earnings Per Share | $0.39 | $0.39 | -- | --% |
Diluted Earnings Per Share | $0.21 | $0.41 | ($0.20) | -49% |
Weighted Average Diluted | ||||
Common Shares Outstanding | 36,794,356 | 33,441,652 | 3,352,704 | 10% |
Core Return on Average Assets (1) | 0.90% | 0.94% | -4 bps | -4% |
Return on Average Assets (1) | 0.48% | 0.97% | -49 bps | -51% |
Core Return on Average Equity (1) | 9.01% | 9.76% | -75 bps | -8% |
Return on Average Equity (1) | 4.83% | 10.12% | -529 bps | -52% |
Core Return on Average Tangible Common Equity (1)(3) | 13.58% | 14.01% | -43 bps | -3% |
Return on Average Tangible Common Equity (1)(3) | 7.49% | 14.51% | -702 bps | -48% |
Net Interest Margin (2) | 3.68% | 3.90% | -22 bps | -6% |
Asset Quality | March 31, | December 31, | ||
2013 | 2012 | |||
Nonaccrual Loans | $41,726 | $39,676 | ||
90 Days Past Due and Still Accruing | $1,651 | $2,448 | ||
Total Nonperforming Loans | $43,377 | $42,124 | ||
Other Real Estate Owned | $2,864 | $2,276 | ||
Total Nonperforming Assets | $46,241 | $44,400 | ||
Allowance for Loan Losses | $68,734 | $69,334 | ||
Allowance for Loan Losses to Total Originated Loans (4) | 1.69% | 1.72% | ||
Allowance for Loan Losses to Total Loans | 1.32% | 1.62% | ||
Total Nonperforming Loans to Total Loans | 0.83% | 0.98% | ||
Total Nonperforming Assets to Total Assets | 0.61% | 0.73% | ||
Past Due Loans to Total Loans | 0.81% | 0.71% | ||
Allowance for Loan Losses to Total Nonperforming Loans | 158.46% | 164.60% | ||
Net Charge-Offs to Average Loans | 0.56% | 0.55% | ||
Capital | ||||
Equity to Assets | 10.55% | 9.64% | ||
Book Value Per Share | $18.36 | $17.24 | ||
Tangible Book Value Per Share (5) | $11.67 | $12.23 | ||
Tier 1 Capital Ratio | 11.33% | 11.00% | ||
Total Risk-Based Capital Ratio | 12.58% | 12.25% | ||
Quarterly Common Stock Price | 2013 | 2012 | ||
Quarter End | High | Low | High | Low |
March 31 | $22.37 | $20.15 | $24.10 | $20.75 |
June 30 | $22.50 | $19.19 | ||
September 30 | $22.89 | $19.91 | ||
December 31 | $22.45 | $18.92 | ||
(1) Annualized | ||||
(2) Calculated on a FTE basis | ||||
(3) Excludes amortization of intangible assets (net of tax) from net income and average tangible common equity is calculated as follows: | ||||
2013 | 2012 | |||
Average stockholders' equity | $ 642,693 | $ 542,628 | ||
Less: average goodwill and other intangibles | 200,779 | 150,478 | ||
Average tangible common equity | $ 441,914 | $ 392,150 | ||
(4) Excludes acquired loans with no related allowance recorded | ||||
(5) Stockholders' equity less goodwill and intangible assets divided by common shares outstanding |
NBT Bancorp Inc. and Subsidiaries | March 31, | December 31, |
Consolidated Balance Sheets (unaudited) | 2013 | 2012 |
(in thousands) | ||
ASSETS | ||
Cash and due from banks | $ 133,632 | $ 157,094 |
Short term interest bearing accounts | 165,514 | 6,574 |
Securities available for sale, at fair value | 1,465,791 | 1,147,999 |
Securities held to maturity (fair value of $63,360and $61,535 at March 31, 2013 and December 31, 2012, respectively) | 62,474 | 60,563 |
Trading securities | 4,762 | 3,918 |
Federal Reserve and Federal Home Loan Bank stock | 35,918 | 29,920 |
Loans | 5,195,033 | 4,277,616 |
Less allowance for loan losses | 68,734 | 69,334 |
Net loans | 5,126,299 | 4,208,282 |
Premises and equipment, net | 88,582 | 77,875 |
Goodwill | 263,645 | 152,373 |
Intangible assets, net | 29,273 | 16,962 |
Bank owned life insurance | 112,123 | 80,702 |
Other assets | 122,818 | 99,997 |
TOTAL ASSETS | $ 7,610,831 | $ 6,042,259 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Deposits: | ||
Demand (noninterest bearing) | $ 1,503,849 | $ 1,242,712 |
Savings, NOW, and money market | 3,345,634 | 2,558,376 |
Time | 1,166,480 | 983,261 |
Total deposits | 6,015,963 | 4,784,349 |
Short-term borrowings | 185,871 | 162,941 |
Long-term debt | 428,661 | 367,492 |
Trust preferred debentures | 101,196 | 75,422 |
Other liabilities | 75,845 | 69,782 |
Total liabilities | 6,807,536 | 5,459,986 |
Total stockholders' equity | 803,295 | 582,273 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,610,831 | $ 6,042,259 |
Three Months Ended | ||
NBT Bancorp Inc. and Subsidiaries | March 31, | |
Consolidated Statements of Income (unaudited) | 2013 | 2012 |
(in thousands, except per share data) | ||
Interest, fee and dividend income: | ||
Loans | $ 53,695 | $ 50,208 |
Securities available for sale | 5,746 | 7,366 |
Securities held to maturity | 525 | 640 |
Other | 403 | 392 |
Total interest, fee and dividend income | 60,369 | 58,606 |
Interest expense: | ||
Deposits | 4,150 | 5,143 |
Short-term borrowings | 42 | 41 |
Long-term debt | 3,609 | 3,581 |
Trust preferred debentures | 428 | 449 |
Total interest expense | 8,229 | 9,214 |
Net interest income | 52,140 | 49,392 |
Provision for loan losses | 5,658 | 4,471 |
Net interest income after provision for loan losses | 46,482 | 44,921 |
Noninterest income: | ||
Insurance and other financial services revenue | 6,893 | 6,154 |
Service charges on deposit accounts | 4,323 | 4,341 |
ATM and debit card fees | 3,242 | 2,962 |
Retirement plan administration fees | 2,682 | 2,333 |
Trust | 2,913 | 2,129 |
Bank owned life insurance income | 849 | 971 |
Net securities gains | 1,145 | 455 |
Other | 3,182 | 3,711 |
Total noninterest income | 25,229 | 23,056 |
Noninterest expense: | ||
Salaries and employee benefits | 27,047 | 26,725 |
Occupancy | 4,977 | 4,491 |
Data processing and communications | 3,455 | 3,258 |
Professional fees and outside services | 2,901 | 2,725 |
Equipment | 2,582 | 2,380 |
Office supplies and postage | 1,590 | 1,671 |
FDIC expenses | 1,130 | 931 |
Advertising | 723 | 802 |
Amortization of intangible assets | 851 | 819 |
Loan collection and other real estate owned | 718 | 638 |
Merger related | 10,681 | 511 |
Other operating | 4,050 | 3,523 |
Total noninterest expense | 60,705 | 48,474 |
Income before income taxes | 11,006 | 19,503 |
Income taxes | 3,357 | 5,853 |
Net income | $ 7,649 | $ 13,650 |
Earnings Per Share: | ||
Basic | $ 0.21 | $ 0.41 |
Diluted | $ 0.21 | $ 0.41 |
NBT Bancorp Inc. and Subsidiaries | 1Q | 4Q | 3Q | 2Q | 1Q |
Quarterly Consolidated Statements of Income (unaudited) | 2013 | 2012 | 2012 | 2012 | 2012 |
(in thousands, except per share data) | |||||
Interest, fee and dividend income: | |||||
Loans | $ 53,695 | $ 53,924 | $ 53,817 | $ 50,509 | $ 50,208 |
Securities available for sale | 5,746 | 5,981 | 6,550 | 7,108 | 7,366 |
Securities held to maturity | 525 | 549 | 572 | 617 | 640 |
Other | 403 | 403 | 348 | 413 | 392 |
Total interest, fee and dividend income | 60,369 | 60,857 | 61,287 | 58,647 | 58,606 |
Interest expense: | |||||
Deposits | 4,150 | 4,327 | 4,544 | 4,834 | 5,143 |
Short-term borrowings | 42 | 39 | 60 | 48 | 41 |
Long-term debt | 3,609 | 3,627 | 3,640 | 3,580 | 3,581 |
Trust preferred debentures | 428 | 411 | 436 | 434 | 449 |
Total interest expense | 8,229 | 8,404 | 8,680 | 8,896 | 9,214 |
Net interest income | 52,140 | 52,453 | 52,607 | 49,751 | 49,392 |
Provision for loan losses | 5,658 | 6,940 | 4,755 | 4,103 | 4,471 |
Net interest income after provision for loan losses | 46,482 | 45,513 | 47,852 | 45,648 | 44,921 |
Noninterest income: | |||||
Insurance and other financial services revenue | 6,893 | 5,363 | 5,591 | 5,279 | 6,154 |
Service charges on deposit accounts | 4,323 | 4,687 | 4,626 | 4,571 | 4,341 |
ATM and debit card fees | 3,242 | 2,955 | 3,378 | 3,063 | 2,962 |
Retirement plan administration fees | 2,682 | 2,635 | 2,718 | 2,411 | 2,333 |
Trust | 2,913 | 2,489 | 2,242 | 2,312 | 2,129 |
Bank owned life insurance income | 849 | 849 | 639 | 618 | 971 |
Net securities gains | 1,145 | 21 | 26 | 97 | 455 |
Other | 3,182 | 2,963 | 2,407 | 2,331 | 3,711 |
Total noninterest income | 25,229 | 21,962 | 21,627 | 20,682 | 23,056 |
Noninterest expense: | |||||
Salaries and employee benefits | 27,047 | 26,457 | 26,641 | 24,992 | 26,725 |
Occupancy | 4,977 | 4,265 | 4,437 | 4,222 | 4,491 |
Data processing and communications | 3,455 | 3,396 | 3,352 | 3,431 | 3,258 |
Professional fees and outside services | 2,901 | 2,615 | 2,735 | 2,388 | 2,725 |
Equipment | 2,582 | 2,403 | 2,435 | 2,409 | 2,380 |
Office supplies and postage | 1,590 | 1,647 | 1,597 | 1,574 | 1,671 |
FDIC expenses | 1,130 | 1,020 | 939 | 942 | 931 |
Advertising | 723 | 581 | 701 | 805 | 802 |
Amortization of intangible assets | 851 | 864 | 870 | 841 | 819 |
Loan collection and other real estate owned | 718 | 509 | 614 | 799 | 638 |
Merger | 10,681 | 713 | 558 | 826 | 511 |
Other operating | 4,050 | 4,122 | 4,552 | 4,161 | 3,523 |
Total noninterest expense | 60,705 | 48,592 | 49,431 | 47,390 | 48,474 |
Income before income taxes | 11,006 | 18,883 | 20,048 | 18,940 | 19,503 |
Income taxes | 3,357 | 5,767 | 5,513 | 5,683 | 5,853 |
Net income | $ 7,649 | $ 13,116 | $ 14,535 | $ 13,257 | $ 13,650 |
Earnings per share: | |||||
Basic | $ 0.21 | $ 0.39 | $ 0.43 | $ 0.40 | $ 0.41 |
Diluted | $ 0.21 | $ 0.39 | $ 0.43 | $ 0.40 | $ 0.41 |
Three Months ended March 31, | ||||||
2013 | 2012 | |||||
Average | Yield/ | Average | Yield/ | |||
(dollars in thousands) | Balance | Interest | Rates | Balance | Interest | Rates |
ASSETS | ||||||
Short-term interest bearing accounts | $ 75,110 | $ 39 | 0.21% | $ 80,127 | $ 35 | 0.18% |
Securities available for sale (1)(2) | 1,197,238 | 6,179 | 2.09% | 1,212,766 | 7,855 | 2.61% |
Securities held to maturity (1) | 52,905 | 790 | 6.06% | 70,542 | 965 | 5.50% |
Investment in FRB and FHLB Banks | 31,312 | 367 | 4.75% | 27,020 | 357 | 5.31% |
Loans and leases (3) | 4,492,106 | 53,904 | 4.87% | 3,809,461 | 50,445 | 5.33% |
Total interest earning assets | $ 5,848,671 | $ 61,279 | 4.25% | $ 5,199,916 | $ 59,657 | 4.61% |
Other assets | 554,355 | 459,542 | ||||
Total assets | $ 6,403,026 | $ 5,659,458 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Money market deposit accounts | $1,190,555 | $ 410 | 0.14% | $1,089,347 | $ 612 | 0.23% |
NOW deposit accounts | 799,219 | 447 | 0.23% | 694,937 | 530 | 0.31% |
Savings deposits | 770,559 | 145 | 0.08% | 641,969 | 114 | 0.07% |
Time deposits | 1,015,711 | 3,148 | 1.26% | 956,350 | 3,887 | 1.63% |
Total interest bearing deposits | $ 3,776,044 | $ 4,150 | 0.45% | $ 3,382,603 | $ 5,143 | 0.61% |
Short-term borrowings | 168,783 | 42 | 0.10% | 162,806 | 41 | 0.10% |
Trust preferred debentures | 82,295 | 428 | 2.11% | 75,422 | 449 | 2.40% |
Long-term debt | 382,177 | 3,609 | 3.83% | 370,395 | 3,581 | 3.89% |
Total interest bearing liabilities | $ 4,409,299 | $ 8,229 | 0.76% | $ 3,991,226 | $ 9,214 | 0.93% |
Demand deposits | 1,283,737 | 1,062,557 | ||||
Other liabilities | 67,297 | 63,047 | ||||
Stockholders' equity | 642,693 | 542,628 | ||||
Total liabilities and stockholders' equity | $ 6,403,026 | $ 5,659,458 | ||||
Net interest income (FTE) | 53,050 | 50,443 | ||||
Interest rate spread | 3.49% | 3.68% | ||||
Net interest margin | 3.68% | 3.90% | ||||
Taxable equivalent adjustment | 910 | 1,051 | ||||
Net interest income | $ 52,140 | $ 49,392 | ||||
(1) Securities are shown at average amortized cost | ||||||
(2) Excluding unrealized gains or losses | ||||||
(3) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding |
NBT Bancorp Inc. and Subsidiaries | ||||
Loans (Unaudited) | ||||
Consolidated Loan Balances | 2013 | |||
March 31, | December 31, | Acquired | ||
(In thousands) | 2013 | 2012 | Balances * | |
Residential real estate mortgages | $ 996,925 | $ 651,107 | $ 333,105 | |
Commercial | 829,766 | 694,799 | 179,672 | |
Commercial real estate mortgages | 1,233,763 | 1,072,807 | 117,752 | |
Real estate construction and development | 136,402 | 123,078 | -- | |
Agricultural and agricultural real estate mortgages | 107,023 | 112,687 | -- | |
Consumer | 1,253,645 | 1,047,856 | 200,470 | |
Home equity | 637,509 | 575,282 | 73,474 | |
Total loans | $ 5,195,033 | $ 4,277,616 | $ 904,473 | |
* Balances are as of Alliance acquisition date of March 8, 2013 |
CONTACT:
607-337-6119