NBT Bancorp Inc. Announces Annual Earnings of $1.53 per Diluted Share; Declares Cash Dividend
Net income per diluted share for the year ended December 31, 2009 was $1.53 per share, as compared with $1.80 per share for the year ended December 31, 2008. Return on average assets and return on average equity were 0.96% and 10.90%, respectively, for the year ended December 31, 2009, compared with 1.11% and 14.16%, respectively, for the year ended December 31, 2008. Net interest margin was 4.04% for the year ended December 31, 2009, up 9 bp from 3.95% for the year ended December 31, 2008. Net income for the year ended December 31, 2009 was $52.0 million, down $6.3 million, or 10.9%, from the year ended December 31, 2008.
For the three months ended December 31, 2009, FDIC expenses increased $0.5 million over the three months ended December 31, 2008. For the year ended December 31, 2009, FDIC expenses increased $6.6 million over the year ended December 31, 2008, including the special assessment of approximately $2.5 million. The FDIC premium increases had a $0.01 effect on diluted earnings per share for the three months ended December 31, 2009 and the FDIC premium increases and special assessment had a $0.14 effect on diluted earnings per share for the year ended December 31, 2009. For the three months ended December 31, 2009, pension expenses increased $0.6 million over the three months ended December 31, 2008. For the year ended December 31, 2009, pension expenses increased $2.8 million over the year ended December 31, 2008. The pension expense increases had a $0.02 and $0.06 effect on diluted earnings per share for the three months ended December 31, 2009 and for the year ended December 31, 2009, respectively.
NBT President and CEO Martin Dietrich said: "Many banks have struggled this past year. I am pleased that NBT achieved strong 2009 results in what remained a very challenging economic environment. Our earnings were at a level similar to our record year in 2008, except for increased FDIC and pension expenses. We achieved these results by continuing to focus on the fundamentals, including a strong balance sheet, an active lending program and strategic investments. Our successful capital raise in the second quarter, expansion into Vermont and the full-year impact of our acquisition of the Mang Insurance Agency are all examples of the ways we are continuing to invest in our future and position our company to benefit when the economy begins to recover."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at December 31, 2009 were $41.3 million or 1.13% of total loans and leases compared with $39.2 million or 1.08% at September 30, 2009 and $26.5 million or 0.73% at December 31, 2008. The increase in nonperforming loans at December 31, 2009 as compared with December 31, 2008 was primarily the result of specific commercial and agricultural credits.
The allowance for loan and lease losses totaled $66.6 million at December 31, 2009, $64.7 million at September 30, 2009 and $58.6 million at December 31, 2008. The increase from December 31, 2008 was due to an increase in specific reserves on specific nonaccrual loans in addition to increased reserve levels on certain loan types warranted by trends in economic factors during the year. As loans and leases are flat year over year, the allowance for loan losses as a percentage of loans and leases increased to 1.83% at December 31, 2009 from 1.60% at December 31, 2008 Past due loans as a percentage of total loans has improved to 0.89% at December 31, 2009, as compared with 1.00% at September 30, 2009 and 0.91% at December 31, 2008 which reflects the Company's continued commitment to diligent collection efforts.
The Company recorded a provision for loan and lease losses of $8.6 million during the fourth quarter of 2009 compared with $7.7 million during the fourth quarter of 2008. The increase in the provision for loan and lease losses for the three months ended December 31, 2009 as compared with the three months ended December 31, 2008 was due primarily to an increase in net charge-offs which totaled $6.7 million for the three month period ending December 31, 2009, up from $5.0 million for the three months ending December 31, 2008 due to continued effects of the economic recession. Net charge-offs to average loans and leases for the three months ended December 31, 2009 were 0.75%, compared with 0.79% for the three months ended September 30, 2009, and 0.55% for the three months ended December 31, 2008.
The Company recorded a provision for loan and lease losses of $33.4 million for the year ended December 31, 2009 compared with $27.2 million for the year ended December 31, 2008. The increase in the provision for loan and lease losses for the year ended December 31, 2009 was due primarily to an increase in net charge-offs which totaled $25.4 million for the year ended December 31, 2009, up from $22.8 million for the year ended December 31, 2008. Net charge-offs to average loans and leases for the year ended December 31, 2009 were 0.70%, compared with 0.64% for the year ended December 31, 2008.
Net Interest Income
Net interest income was up 5.5% to $51.6 million for the three months ended December 31, 2009 compared with $48.9 million for the three months ended December 31, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 4.15% for the three months ended December 31, 2009, as compared with 4.06% for the three months ended December 31, 2008. The Company experienced a 2.6% growth in average earning assets for the three months ending December 31, 2009 as compared with the three months ending December 31, 2008, due primarily to increases in average short-term interest bearing accounts and average securities held to maturity. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 11 bp on our net interest margin for the three months ended December 31, 2009.
Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 77 basis points, which contributed to the increase in the net interest margin for the three months ended December 31, 2009 compared to the same period for 2008. The yield on time deposits was 2.23% for the three months ended December 31, 2009, as compared with 3.27% for the three months ended December 31, 2008. The yield on money market deposit accounts was 0.88% for the three months ended December 31, 2009, as compared with 1.61% for the three months ended December 31, 2008. The yield on short term borrowings declined 49 basis points for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008 as a result of the 175 basis point drop in the Fed Funds Target Rate during the fourth quarter of 2008.
Net interest income was up 5.6% to $196.5 million for the year ended December 31, 2009 compared with $186.0 million for the year ended December 31, 2008. The Company's fully taxable equivalent (FTE) net interest margin was 4.04% for the year ended December 31, 2009, as compared with 3.95% for the year ended December 31, 2008. In addition, the Company experienced a 2.8% growth in average earning assets for the year ended December 31, 2009 as compared with the year ended December 31, 2008, due primarily to increases in average loans and leases and short term interest bearing accounts. As a result of our excess liquidity, our Federal Funds sold position had a negative impact of 8 bp on our net interest margin for the year ended December 31, 2009.
Although the yield on interest earning assets decreased 59 basis points, the yield on interest bearing liabilities declined 79 basis points, which contributed to the increase in the net interest margin for the year ended December 31, 2009 compared to the year ended December 31, 2008. The yield on time deposits was 2.64% for the year ended December 31, 2009, as compared with 3.68% for the year ended December 31, 2008. The yield on money market deposit accounts was 1.20% for the year ended December 31, 2009, as compared with 1.85% for the year ended December 31, 2008. The yield on short term borrowings declined 178 basis points for the year ended December 31, 2009 as compared to the year ended December 31, 2008 as a result of the 400 bp drop in the Fed Funds Target Rate during 2008.
Noninterest Income
Noninterest income for the three months ended December 31, 2009 was $19.8 million, down $0.4 million or 1.9% from $20.2 million for the same period in 2008. The decrease in noninterest income was due primarily to a decrease in bank owned life insurance income of approximately $1.6 million for the three months ended December 31, 2009 as compared to the three months ended December 31, 2008 due primarily to a death benefit realized during the fourth quarter of 2008 from a life insurance policy. In addition, service charges on deposit accounts decreased approximately $0.5 million for the three month period ending December 31, 2009 as compared to the same period in 2008. These decreases were partially offset by an increase in retirement plan administration fees of approximately $1.3 million for the three month period ended December 31, 2009 as compared with the three month period ended December 31, 2008 as a result of organic growth from new business. In addition, trust income increased approximately $0.2 million for the three months ended December 31, 2009 as compared to the same period in 2008 as a result of an increase in fair value of trust assets under administration.
Noninterest income for the year ended December 31, 2009 was $80.1 million, up $8.4 million or 11.7% from $71.7 million for the same period in 2008. The increase in noninterest income was due primarily to an increase in insurance and broker/dealer revenue, which increased approximately $9.0 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008. This increase was due primarily to revenue generated by Mang Insurance Agency, LLC, which was acquired on September 1, 2008. In addition, retirement plan administration fees increased approximately $2.8 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008 as a result of organic growth from new business. These increases were partially offset by a decrease in bank owned life insurance income of approximately $1.8 million for the year ended December 31, 2009 as compared to the year ended December 31, 2008. This decrease was primarily due to the aforementioned death benefit realized during the fourth quarter of 2008 from a life insurance policy. In addition, net securities gains decreased by approximately $1.4 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended December 31, 2009 was $45.3 million, up from $40.3 million for the same period in 2008. Salaries and employee benefits increased $2.3 million, or 11.1%, for the three months ended December 31, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced increases of approximately $0.6 million and $0.4 million in pension and medical expenses, respectively, for the three months ended December 31, 2009 as compared with the same period in 2008. FDIC expenses increased approximately $0.5 million to $1.3 million for the three months ended December 31, 2009, compared to $0.8 million for the same period in 2008 due to an increase in recurring FDIC premiums, which increased to $1.3 million for the three months ended December 31, 2009 as compared with $0.8 million for the same period last year. For the three month period ended December 31, 2009, other operating expenses totaled $6.5 million, up $1.8 million or 38.6%, from $4.7 million for the three months ended December 31, 2008. This increase resulted from a prepayment penalty incurred to payoff long-term debt during the fourth quarter of 2009 and a termination fee associated with the early termination of a vendor contract in the fourth quarter of 2009. Income tax expense for the three month period ended December 31, 2009 was $3.7 million, down from $6.2 million for the same period in 2008. The decrease in income tax expense is primarily the result of the decrease in pre-tax income.
Noninterest expense for the year ended December 31, 2009 was $170.6 million, up from $146.8 million for the same period in 2008. Salaries and employee benefits increased $14.4 million, or 20.2%, for the year ended December 31, 2009 compared with the same period in 2008. This increase was due primarily to increases in full-time-equivalent employees during 2009, largely due to the aforementioned acquisition and de novo branch activity. In addition, the Company experienced increases of approximately $2.8 million and $1.3 million in pension and medical expenses, respectively, for the year ended December 31, 2009 as compared with the same period in 2008. FDIC expenses increased approximately $6.6 million for the year ended December 31, 2009, compared with the year ended December 31, 2008. This increase was due to the special assessment imposed by the FDIC totaling approximately $2.5 million during the second quarter of 2009, in addition to increased recurring FDIC premiums. Amortization of intangible assets was $3.2 million for the year ended December 31, 2009, up $1.1 million from $2.1 million for same period in 2008 due to the aforementioned acquisition. Occupancy expenses were up approximately $1.1 million for the year ended December 31, 2009 as compared with the year ended December 31, 2008. This increase was due primarily to the aforementioned acquisition and de novo branch activity during the period. Income tax expense for the year ended December 31, 2009 was $20.6 million, down from $25.4 million for the same period in 2008. The decrease in income tax expense is primarily the result of the decrease in pre-tax income.
Balance Sheet
Total assets were $5.5 billion at December 31, 2009, up $127.9 million or 2.4% from $5.3 billion at December 31, 2008. Loans and leases were $3.6 billion at December 31, 2009, down $6.5 million from December 31, 2008. The Company experienced a shift from residential real estate mortgages, which decreased by approximately $99.8 million, or 13.8%, from December 31, 2008 to December 31, 2009, to consumer loans, which increased by approximately $61.8 million, or 7.8%, from December 31, 2008 to December 31, 2009. Total deposits were $4.1 billion at December 31, 2009, up $169.8 million or 4.3% from December 31, 2008. The increase from December 31, 2008 was due in large part to a $384.2 million, or 20.4%, increase in NOW, savings and money market accounts, and an increase in demand deposit accounts of $104.5 million. These increases were partially offset by a $318.9 million decrease in time deposits. Stockholders' equity was $505.1 million, representing a total equity-to-total assets ratio of 9.24% at December 31, 2009, compared with $431.8 million or a total equity-to-total assets ratio of 8.09% at December 31, 2008. The increase in stockholders' equity was due in large part to the Company completing a public offering of 1,576,230 shares of its common stock on April 1, 2009 and raising approximately $33.5 million in net proceeds.
Stock Repurchase Program
On October 26, 2009, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective January 1, 2010, as market conditions warrant in open market and privately negotiated transactions. The plan expires on December 31, 2011. On December 31, 2009, the repurchase program previously authorized on January 28, 2008 to repurchase up to 1,000,000 shares expired. The Company made no purchases of its common stock securities during the year ended December 31, 2009.
Dividend Declared
The NBT Board of Directors declared a 2010 first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2010, to shareholders of record as of March 1, 2010.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.5 billion at December 31, 2009. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. NBT Bank, N.A. has 123 locations, including 84 NBT Bank offices in upstate New York, 38 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions can be found on the Internet at: www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.manginsurance.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 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. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2009 2008 Change Change
------------- ------------- ------------- -------------
(dollars in thousands,
except per share data)
Three Months
Ended
December 31,
Net Income $ 13,801 $ 14,897 $ (1,096) -7%
Diluted
Earnings Per
Share $ 0.40 $ 0.45 $ (0.05) -11%
Weighted
Average Diluted
Common Shares
Outstanding 34,348,189 32,758,405 1,589,784 5%
Return on
Average Assets
(1) 1.00% 1.11% -11 bp -10%
Return on
Average Equity
(1) 10.92% 13.88% -296 bp -21%
Net Interest
Margin (2) 4.15% 4.06% 9 bp 2%
============= ============= ============= =============
Year Ended
December 31,
Net Income $ 52,011 $ 58,353 $ (6,342) -11%
Diluted
Earnings Per
Share $ 1.53 $ 1.80 $ (0.27) -15%
Weighted
Average Diluted
Common Shares
Outstanding 33,902,517 32,427,193 1,475,324 5%
Return on
Average Assets 0.96% 1.11% -15 bp -14%
Return on
Average Equity 10.90% 14.16% -326 bp -23%
Net Interest
Margin (2) 4.04% 3.95% 9 bp 2%
============= ============= ============= =============
Asset Quality December 31, December 31,
2009 2008
------------- -------------
Nonaccrual
Loans $ 38,746 $ 24,191
90 Days Past
Due and Still
Accruing $ 2,526 $ 2,305
Total
Nonperforming
Loans $ 41,272 $ 26,496
Other Real
Estate Owned $ 2,358 $ 665
Total
Nonperforming
Assets $ 43,630 $ 27,161
Past Due Loans $ 32,349 $ 33,098
Potential
Problem Loans $ 79,072 $ 95,423
Allowance for
Loan and Lease
Losses $ 66,550 $ 58,564
Year-to-Date
(YTD) Net
Charge-Offs $ 25,406 $ 22,800
Allowance for
Loan and Lease
Losses to
Total Loans
and Leases 1.83% 1.60%
Total
Nonperforming
Loans to Total
Loans and
Leases 1.13% 0.73%
Total
Nonperforming
Assets to
Total Assets 0.80% 0.51%
Past Due Loans
to Total Loans
and Leases 0.89% 0.91%
Allowance for
Loan and Lease
Losses to
Total
Nonperforming
Loans 161.25% 221.03%
Net Charge-Offs
to YTD Average
Loans and
Leases 0.70% 0.64%
============= =============
Capital
Equity to
Assets 9.24% 8.09%
Book Value Per
Share $ 14.69 $ 13.24
Tangible Book
Value Per
Share $ 10.75 $ 9.01
Tier 1 Leverage
Ratio 8.35% 7.17%
Tier 1 Capital
Ratio 11.34% 9.75%
Total
Risk-Based
Capital Ratio 12.59% 11.00%
============= =============
Quarterly
Common Stock
Price 2009 2008 2007
Quarter End High Low High Low High Low
------ ------ ------ ------ ------ ------
March 31 $28.37 $15.42 $23.65 $17.95 $25.81 $21.73
June 30 $25.22 $20.49 25.00 20.33 23.45 21.80
September 30 $24.16 $20.57 36.47 19.05 23.80 17.10
December 31 $23.59 $19.43 30.83 21.71 25.00 20.58
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
December 31, December 31, Net Percent
2009 2008 Change Change
------------- ------------- ------------ ------------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $ 3,645,398 $ 3,651,911 $ (6,513) 0%
Earning Assets $ 5,009,251 $ 4,933,099 $ 76,152 2%
Total Assets $ 5,464,026 $ 5,336,088 $ 127,938 2%
Deposits $ 4,093,046 $ 3,923,258 $ 169,788 4%
Stockholders'
Equity $ 505,123 $ 431,845 $ 73,278 17%
============= ============= ============ ============
2009 2008
------------- -------------
(dollars in thousands,
except per share data)
Average Balances
Three Months Ended
December 31,
Loans and Leases $ 3,628,244 $ 3,634,346 $ (6,102) 0%
Securities
Available For Sale
(excluding
unrealized gains
or losses) $ 1,124,877 $ 1,117,469 $ 7,408 1%
Securities Held To
Maturity $ 165,108 $ 140,141 $ 24,967 18%
Trading Securities $ 2,312 $ 1,855 $ 457 25%
Regulatory Equity
Investment $ 37,091 $ 39,751 $ (2,660) -7%
Short-Term Interest
Bearing Accounts $ 122,104 $ 17,151 $ 104,953 612%
Total Earning
Assets $ 5,077,424 $ 4,948,858 $ 128,566 3%
Total Assets $ 5,499,273 $ 5,349,609 $ 149,664 3%
Interest Bearing
Deposits $ 3,352,879 $ 3,267,893 $ 84,986 3%
Non-Interest
Bearing Deposits $ 748,451 $ 695,696 $ 52,755 8%
Short-Term
Borrowings $ 159,050 $ 181,032 $ (21,982) -12%
Long-Term
Borrowings $ 654,592 $ 708,867 $ (54,275) -8%
Total Interest
Bearing
Liabilities $ 4,166,521 $ 4,157,792 $ 8,729 0%
Stockholders'
Equity $ 501,225 $ 426,918 $ 74,307 17%
============= ============= ============ ============
Average Balances
Year Ended
December 31,
Loans and Leases $ 3,641,852 $ 3,567,299 $ 74,553 2%
Securities
Available For Sale
(excluding
unrealized gains
or losses) $ 1,095,609 $ 1,113,810 $ (18,201) -2%
Securities Held To
Maturity $ 151,078 $ 149,775 $ 1,303 1%
Trading Securities $ 1,929 $ 2,254 $ (325) -14%
Regulatory Equity
Investment $ 37,878 $ 39,735 $ (1,857) -5%
Short-Term Interest
Bearing Accounts $ 88,012 $ 9,190 $ 78,822 858%
Total Earning
Assets $ 5,014,429 $ 4,879,809 $ 134,620 3%
Total Assets $ 5,429,009 $ 5,264,655 $ 164,354 3%
Interest Bearing
Deposits $ 3,340,735 $ 3,239,029 $ 101,706 3%
Non-Interest
Bearing Deposits $ 718,580 $ 682,656 $ 35,924 5%
Short-Term
Borrowings $ 140,066 $ 223,830 $ (83,764) -37%
Long-Term
Borrowings $ 676,461 $ 638,882 $ 37,579 6%
Total Interest
Bearing
Liabilities $ 4,157,262 $ 4,101,741 $ 55,521 1%
Stockholders'
Equity $ 477,299 $ 412,102 $ 65,197 16%
============= ============= ============ ============
NBT Bancorp Inc. and Subsidiaries December 31, December 31,
Consolidated Balance Sheets (unaudited) 2009 2008
------------ ------------
(in thousands)
ASSETS
Cash and due from banks $ 107,980 $ 107,409
Short term interest bearing accounts 79,181 2,987
Securities available for sale, at fair value 1,116,758 1,119,665
Securities held to maturity (fair value of
$161,851 and $141,308 at December 31, 2009
and December 31, 2008, respectively) 159,946 140,209
Trading securities 2,410 1,407
Federal Reserve and Federal Home Loan Bank stock 35,979 39,045
Loans and leases 3,645,398 3,651,911
Less allowance for loan and lease losses 66,550 58,564
============ ============
Net loans and leases 3,578,848 3,593,347
Premises and equipment, net 66,221 65,241
Goodwill 114,938 114,838
Intangible assets, net 20,590 23,367
Bank owned life insurance 74,322 72,276
Other assets 106,853 56,297
------------ ------------
TOTAL ASSETS $ 5,464,026 $ 5,336,088
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 789,989 $ 685,495
Savings, NOW, and money market 2,269,779 1,885,551
Time 1,033,278 1,352,212
------------ ------------
Total deposits 4,093,046 3,923,258
Short-term borrowings 155,977 206,492
Long-term debt 554,698 632,209
Trust preferred debentures 75,422 75,422
Other liabilities 79,760 66,862
------------ ------------
Total liabilities 4,958,903 4,904,243
Total stockholders' equity 505,123 431,845
============ ============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,464,026 $ 5,336,088
============ ============
NBT Bancorp Inc. and Subsidiaries Three months ended Year ended
Consolidated Statements of Income December 31, December 31,
(unaudited) 2009 2008 2009 2008
-------- -------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $ 55,361 $ 58,164 $ 220,324 $ 232,155
Securities available for sale 10,810 13,434 45,972 54,048
Securities held to maturity 1,212 1,253 4,894 5,588
Other 621 436 2,203 2,623
-------- -------- --------- ---------
Total interest, fee and dividend
income 68,004 73,287 273,393 294,414
-------- -------- --------- ---------
Interest expense:
Deposits 9,532 16,371 48,496 76,132
Short-term borrowings 139 382 552 4,847
Long-term debt 5,673 6,401 23,629 22,642
Trust preferred debentures 1,036 1,200 4,247 4,747
-------- -------- --------- ---------
Total interest expense 16,380 24,354 76,924 108,368
-------- -------- --------- ---------
Net interest income 51,624 48,933 196,469 186,046
Provision for loan and lease losses 8,641 7,721 33,392 27,181
-------- -------- --------- ---------
Net interest income after provision
for loan and lease losses 42,983 41,212 163,077 158,865
-------- -------- --------- ---------
Noninterest income:
Trust 1,881 1,685 6,719 7,278
Service charges on deposit accounts 6,808 7,266 27,165 28,143
ATM and debit card fees 2,346 2,176 9,339 8,832
Insurance and broker/dealer revenue 3,799 3,915 17,725 8,726
Net securities (losses)/gains (2) (8) 144 1,535
Bank owned life insurance income 910 2,484 3,135 4,923
Retirement plan administration fees 2,739 1,468 9,086 6,308
Other 1,365 1,244 6,818 5,961
-------- -------- --------- ---------
Total noninterest income 19,846 20,230 80,131 71,706
-------- -------- --------- ---------
Noninterest expense:
Salaries and employee benefits 22,919 20,633 85,565 71,159
Office supplies and postage 1,472 1,354 5,857 5,346
Occupancy 3,608 3,385 14,864 13,781
Equipment 2,115 1,944 8,139 7,539
Professional fees and outside
services 2,688 2,651 10,508 10,476
Data processing and communications 3,314 3,254 13,238 12,694
Amortization of intangible assets 781 874 3,246 2,105
Loan collection and other real
estate owned 589 692 2,766 2,494
Impairment on lease residual assets - - - 2,000
FDIC expenses 1,312 827 8,408 1,813
Other operating 6,492 4,684 17,975 17,406
-------- -------- --------- ---------
Total noninterest expense 45,290 40,298 170,566 146,813
-------- -------- --------- ---------
Income before income taxes 17,539 21,144 72,642 83,758
Income taxes 3,738 6,247 20,631 25,405
-------- -------- --------- ---------
Net income $ 13,801 $ 14,897 $ 52,011 $ 58,353
-------- -------- --------- ---------
Earnings Per Share:
Basic $ 0.40 $ 0.46 $ 1.54 $ 1.81
Diluted $ 0.40 $ 0.45 $ 1.53 $ 1.80
======== ======== ========= =========
NBT Bancorp Inc. and
Subsidiaries
Quarterly Consolidated
Statements of Income 4Q 3Q 2Q 1Q 4Q
(unaudited) 2009 2009 2009 2009 2008
-------- --------- --------- --------- --------
(in thousands, except per
share data)
Interest, fee and
dividend income:
Loans and leases $ 55,361 $ 54,666 $ 54,886 $ 55,411 $ 58,164
Securities available for
sale 10,810 11,116 11,671 12,375 13,434
Securities held to
maturity 1,212 1,239 1,209 1,234 1,253
Other 621 615 606 361 436
-------- --------- --------- --------- --------
Total interest, fee and
dividend income 68,004 67,636 68,372 69,381 73,287
-------- --------- --------- --------- --------
Interest expense:
Deposits 9,532 12,002 13,123 13,839 16,371
Short-term borrowings 139 142 124 147 382
Long-term debt 5,673 5,761 5,998 6,197 6,401
Trust preferred
debentures 1,036 1,049 1,076 1,086 1,200
-------- --------- --------- --------- --------
Total interest expense 16,380 18,954 20,321 21,269 24,354
-------- --------- --------- --------- --------
Net interest income 51,624 48,682 48,051 48,112 48,933
Provision for loan and
lease losses 8,641 9,101 9,199 6,451 7,721
-------- --------- --------- --------- --------
Net interest income after
provision for loan and
lease losses 42,983 39,581 38,852 41,661 41,212
-------- --------- --------- --------- --------
Noninterest income:
Trust 1,881 1,668 1,761 1,409 1,685
Service charges on
deposit accounts 6,808 7,110 6,950 6,297 7,266
ATM and debit card fees 2,346 2,443 2,368 2,182 2,176
Insurance and
broker/dealer revenue 3,799 4,368 4,220 5,338 3,915
Net securities
(losses)/gains (2) 129 17 - (8)
Bank owned life insurance
income 910 683 670 872 2,484
Retirement plan
administration fees 2,739 2,412 2,194 1,741 1,468
Other 1,365 2,037 1,665 1,751 1,244
-------- --------- --------- --------- --------
Total noninterest
income 19,846 20,850 19,845 19,590 20,230
-------- --------- --------- --------- --------
Noninterest expense:
Salaries and employee
benefits 22,919 21,272 19,947 21,427 20,633
Office supplies and
postage 1,472 1,426 1,429 1,530 1,354
Occupancy 3,608 3,481 3,610 4,165 3,385
Equipment 2,115 1,997 2,005 2,022 1,944
Professional fees and
outside services 2,688 2,691 2,407 2,722 2,651
Data processing and
communications 3,314 3,305 3,324 3,295 3,254
Amortization of
intangible assets 781 827 825 813 874
Loan collection and other
real estate owned 589 755 674 748 692
FDIC expenses 1,312 1,535 4,032 1,529 827
Other operating 6,492 3,743 3,686 4,054 4,684
-------- --------- --------- --------- --------
Total noninterest
expense 45,290 41,032 41,939 42,305 40,298
-------- --------- --------- --------- --------
Income before income
taxes 17,539 19,399 16,758 18,946 21,144
Income taxes 3,738 5,821 5,198 5,874 6,247
-------- --------- --------- --------- --------
Net income $ 13,801 $ 13,578 $ 11,560 $ 13,072 $ 14,897
======== ========= ========= ========= ========
Earnings per share:
Basic $ 0.40 $ 0.40 $ 0.34 $ 0.40 $ 0.46
Diluted $ 0.40 $ 0.40 $ 0.34 $ 0.40 $ 0.45
======== ========= ========= ========= ========
Three months ended December 31,
2009 2008
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- --------- ----- ---------- --------- -----
ASSETS
Short-term interest
bearing accounts $ 122,104 $ 87 0.28% $ 17,151 $ 41 0.95%
Securities
available for sale
(1)(excluding
unrealized gains
or losses) 1,124,877 11,552 4.07% 1,117,469 14,152 5.04%
Securities held to
maturity (1) 165,108 1,832 4.40% 140,141 1,886 5.35%
Investment in FRB
and FHLB Banks 37,091 533 5.70% 39,751 395 3.95%
Loans and leases (2) 3,628,244 55,551 6.07% 3,634,346 58,381 6.39%
---------- --------- ---------- ---------
Total interest
earning assets $5,077,424 $ 69,555 5.43% $4,948,858 $ 74,855 6.02%
--------- ---------
Trading securities 2,312 1,855
Other assets 419,537 398,896
---------- ----------
Total assets $5,499,273 $5,349,609
---------- ----------
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Money market
deposit accounts $1,067,763 $ 2,359 0.88% $ 904,052 $ 3,649 1.61%
NOW deposit
accounts 688,376 831 0.48% 546,418 1,191 0.87%
Savings deposits 505,131 195 0.15% 462,319 382 0.33%
Time deposits 1,091,609 6,147 2.23% 1,355,103 11,149 3.27%
---------- --------- ---------- ---------
Total interest
bearing deposits $3,352,879 $ 9,532 1.13% $3,267,893 $ 16,371 1.99%
Short-term
borrowings 159,050 139 0.35% 181,032 382 0.84%
Trust preferred
debentures 75,422 1,036 5.45% 75,422 1,200 6.33%
Long-term debt 579,170 5,673 3.89% 633,445 6,401 4.02%
---------- --------- ---------- ---------
Total interest
bearing
liabilities $4,166,521 $ 16,380 1.56% $4,157,792 $ 24,354 2.33%
--------- ---------
Demand deposits 748,451 695,696
Other liabilities 83,076 69,203
Stockholders'
equity 501,225 426,918
---------- ----------
Total liabilities
and stockholders'
equity $5,499,273 $5,349,609
---------- ----------
Net interest
income (FTE) 53,175 50,501
--------- ---------
Interest rate
spread 3.87% 3.69%
Net interest margin 4.15% 4.06%
Taxable equivalent
adjustment 1,551 1,568
--------- ---------
Net interest income $ 51,624 $ 48,933
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
the average loan balances outstanding
Year ended December 31,
2009 2008
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- --------- ----- ---------- --------- -----
ASSETS
Short-term interest
bearing accounts $ 88,012 $ 238 0.27% $ 9,190 $ 186 2.03%
Securities
available for sale
(1)(excluding
unrealized gains
or losses) 1,095,609 48,951 4.47% 1,113,810 56,841 5.10%
Securities held to
maturity (1) 151,078 7,385 4.89% 149,775 8,430 5.63%
Investment in FRB
and FHLB Banks 37,878 1,966 5.19% 39,735 2,437 6.13%
Loans and leases (2) 3,641,852 221,128 6.07% 3,567,299 233,016 6.53%
---------- --------- ---------- ---------
Total interest
earning assets $5,014,429 $ 279,668 5.58% $4,879,809 $ 300,910 6.17%
--------- ---------
Trading securities 1,929 2,254
Other assets 412,651 382,592
---------- ----------
Total assets $5,429,009 $5,264,655
---------- ----------
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Money market
deposit accounts $1,013,514 $ 12,165 1.20% $ 778,477 $ 14,373 1.85%
NOW deposit
accounts 600,943 3,159 0.53% 485,014 4,133 0.85%
Savings deposits 499,079 826 0.17% 467,572 2,161 0.46%
Time deposits 1,227,199 32,346 2.64% 1,507,966 55,465 3.68%
---------- --------- ---------- ---------
Total interest
bearing deposits $3,340,735 $ 48,496 1.45% $3,239,029 $ 76,132 2.35%
Short-term
borrowings 140,066 552 0.39% 223,830 4,847 2.17%
Trust preferred
debentures 75,422 4,247 5.63% 75,422 4,747 6.29%
Long-term debt 601,039 23,629 3.93% 563,460 22,642 4.02%
---------- --------- ---------- ---------
Total interest
bearing
liabilities $4,157,262 $ 76,924 1.85% $4,101,741 $ 108,368 2.64%
--------- ---------
Demand deposits 718,580 682,656
Other liabilities 75,868 68,156
Stockholders'
equity 477,299 412,102
---------- ----------
Total liabilities
and stockholders'
equity $5,429,009 $5,264,655
---------- ----------
Net interest
income (FTE) 202,744 192,542
--------- ---------
Interest rate
spread 3.73% 3.53%
Net interest margin 4.04% 3.95%
Taxable equivalent
adjustment 6,275 6,496
--------- ---------
Net interest income $ 196,469 $ 186,046
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
the average loan balances outstanding
NBT Bancorp Inc. and Subsidiaries
Loans and leases (Unaudited)
At December 31,
---------------------
(In thousands) 2009 2008
---------- ----------
Residential real estate mortgages $ 622,898 $ 722,723
Commercial 581,870 572,059
Commercial real estate 718,235 669,720
Real estate construction and development 76,721 67,859
Agricultural and agricultural real estate mortgages 122,466 113,566
Consumer 856,956 795,123
Home equity 603,585 627,603
Lease financing 62,667 83,258
---------- ----------
Total loans and leases $3,645,398 $3,651,911
========== ==========
Contact:
Martin A. Dietrich
CEO
Michael J. Chewens
CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119
SOURCE: NBT Bancorp Inc.