NBT Bancorp Inc. Announces Annual Earnings of $55.9 Million; Declares Cash Dividend
Net income for the three months ended December 31, 2006, was $13.6 million, up 5.0% or $0.6 million from net income of $13.0 million reported for the same period in 2005. Net income per diluted share for the three-month period ended December 31, 2006 was $0.40 per share, equal to $0.40 per share for the same period in 2005. Return on average assets and return on average equity were 1.07% and 13.31%, respectively, for the three months ended December 31, 2006, compared with 1.17% and 15.47%, respectively, for the same period in 2005. The increase in net income for the three months ended December 31, 2006 was primarily the result of a $1.4 million increase in net interest income and a $1.9 million increase in noninterest income. The aforementioned increases in income were partially offset by a $1.7 million increase in noninterest expense and an increase in the provision for loan and lease losses of $0.9 million for the three months ended December 31, 2006, compared with the same period in 2005.
The comparability of financial information is affected by the acquisition of CNB Bancorp, Inc. ("CNB"). Operating results include the operations of CNB from the date of acquisition, which was February 10, 2006.
NBT President and CEO Martin A. Dietrich stated, "While 2006 presented some unique challenges due to the higher interest rate environment, as well as the record flooding that impacted many of our customers and the communities we serve, we can look back on the year and be proud of our accomplishments in the face of adversity. Our dedicated team of employees remained focused on providing great service to our customers by paying attention to the fundamentals of our business. This helped produce another year of record earnings for our company during a most challenging period. While it is likely that the financial services industry will continue to be challenged by the interest rate environment in 2007, we look forward to continuing to strive to be the premier provider of community banking services in the markets we serve, while also delivering shareholder value."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at December 31, 2006 were $15.3 million or 0.45% of total loans and leases compared with $14.3 million or 0.47% of total loans and leases at December 31, 2005. Net charge-offs to average loans and leases for the year ended December 31, 2006, were 0.26%, compared with the 0.23% ratio for the year ended December 31, 2005. The Company's allowance for loan and lease losses was 1.48% of loans and leases at December 31, 2006, compared with 1.57% at December 31, 2005. The ratio of the allowance for loan and lease losses to nonperforming loans was 330.48% at December 31, 2006, compared with 331.92% at December 31, 2005.
For the year and quarter ended December 31, 2006, the provision for loan and lease losses totaled $9.4 million and $3.5 million, respectively, compared with $9.5 million and $2.6 million, respectively, for the same periods in 2005. Year over year, the provision has remained relatively flat. Potential problem loans have decreased as a percentage of the loan portfolio, offset by an increase in net charge-offs. Primarily as a result of the acquisition of CNB, whose loan portfolio had less inherent risk than NBT, the Allowance for Loan and Lease Losses to Total Loans and Leases decreased from 1.57% at December 31, 2005 to 1.48% at December 31, 2006.
Net Interest Income
Net interest income was up 3.6% to $163.8 million for the year ended December 31, 2006, compared with $158.1 million for the same period a year ago. Despite a decrease in the Company's fully taxable equivalent (FTE) net interest margin, from 4.01% for the year ended December 31, 2005, to 3.70% for the same period in 2006, the Company experienced an increase in net interest income that was attributable to 13.1% growth in average earning assets. The growth in average earning assets was in large part due to the acquisition of CNB as well as our organic loan growth. The Company's net interest margin was 3.63% for the quarter ended December 31, 2006, down from 3.97% for the same period in 2005. Despite this decrease, net interest income for the quarter ended December 31, 2006, increased 3.5%, to $41.4 million, from $40.0 million in the same period for 2005, which was attributable to a 14.0% growth in average earning assets in large part due to the acquisition of CNB as well as our organic loan growth. The decline in the net interest margin is due largely to the effect from our borrowings, money market accounts and time deposits repricing in a higher interest rate environment. Earning assets, particularly those tied to a fixed rate, have not realized the benefit of the higher interest rate environment, since yields on earning assets with terms of three years or longer have remained relatively flat during this period. The Company anticipates that margin pressure will persist into the next several quarters, given the flat to inverted yield curve. If the yield curve remains flat or inverted, we expect net interest income to be relatively flat in 2007.
Noninterest Income
Noninterest income for the year ended December 31, 2006 was $48.6 million, up $6.1 million or 14.3% from $42.5 million for the same period in 2005. Fees from service charges on deposit accounts and ATM and debit cards collectively increased $1.6 million from solid growth in demand deposit accounts and debit card base. Retirement plan administration fees for the year ended December 31, 2006 increased $1.1 million, compared with the same period in 2005, as a result of our growing client base. Bank-owned life insurance income for the year ended December 31, 2006 increased $0.3 million, compared with the same period in 2005, primarily due to the acquisition of CNB. Trust administration income increased $0.6 million for the year ended December 31, 2006, compared with the same period in 2005. This increase stems from the increased market value of accounts, an increase in customer accounts as a result of the acquisition of CNB and successful business development. Broker/dealer and insurance revenue for the year ended December 31, 2006 increased $0.8 million in large part due to the growth in brokerage income from retail financial services as well as the addition of Hathaway Insurance Agency as part of the acquisition of CNB. Other noninterest income for the year ended December 31, 2006 increased $1.4 million, compared with the same period in 2005, as a result of a gain on the sale of a branch, an increase in title insurance revenue, and an increase in interest income earned from our payment services vendor. Net securities losses for the year ended December 31, 2006 were $0.9 million, compared with net securities losses of $1.2 million for the year ended December 31, 2005. Excluding the effect of these securities transactions, noninterest income increased $5.7 million, or 13.1%, for the year ended December 31, 2006, compared with the same period in 2005.
Noninterest income for the three months ended December 31, 2006 was $12.3 million, up $1.9 million or 18.2% from $10.4 million for the same period in 2005. Fees from service charges on deposit accounts and ATM and debit cards increased $0.3 million due to demand deposit account growth. Retirement plan administration fees for the three months ended December 31, 2006 increased $0.2 million, compared with the same period in 2005, as our client base grew. Trust administration income increased $0.2 million for the three months ended December 31, 2006, compared with the same period in 2005, stemming from the increased market value of accounts generating greater fees, an increase in customer accounts as a result of the acquisition of CNB and successful business development. For the three months ended December 31, 2006, broker/dealer and insurance revenue increased by $0.5 million, compared with the same period in 2005, due to the growth in brokerage income from retail financial services as well as the addition of Hathaway Insurance Agency. Net securities losses for the three months ended December 31, 2006 were negligible, compared with a $0.5 million loss for the same period of 2005. Excluding the effect of these securities transactions, noninterest income increased $1.3 million or 12.1% for the three months ended December 31, 2006, compared with the same period in 2005.
Noninterest Expense and Income Tax Expense
Noninterest expense for the year ended December 31, 2006 was $123.0 million, up from $115.3 million for the same period in 2005. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges, increased by $2.1 million for the year ended December 31, 2006, compared with the same period in 2005. This 6.2% increase resulted primarily from the acquisition of CNB Bancorp on February 10, 2006. Salaries and employee benefits increased $2.9 million for the year ended December 31, 2006 over the same period in 2005. This increase was due primarily to the adoption of FAS 123R in 2006, which contributed $1.8 million to the increase in salaries and employee benefits, as well as higher salaries from merit increases and the acquisition of CNB. Professional fees and services increased $1.7 million for the year ended December 31, 2006, compared with the same period in 2005. Legal fees incurred in 2006 increased over 2005 because the Company was reimbursed during the second quarter of 2005 for legal fees associated with a prior litigation. Item processing fees during the year ended December 31, 2006 increased over the same period in 2005 because the Company outsourced a portion of its item processing work as a result of flood-related damage to one of its processing centers. Amortization expense increased $1.1 million for the year ended December 31, 2006 over the same period in 2005. This increase was due primarily to the acquisition of CNB. Loan collection and other real estate owned expenses increased $0.3 million for the year ended December 31, 2006 over the same period in 2005. This increase was due primarily to an increase in the number of foreclosures in 2006 as compared to 2005. Other operating expense for the year ended December 31, 2006 decreased $0.4 million compared with the same period in 2005, primarily due to flood-related insurance recoveries. Income tax expense for the year ended December 31, 2006 was $24.2 million, up from $23.5 million for the same period in 2005. The effective rate for the year ended December 31, 2006 was 30.2%, down from 30.9% for the same period in 2005. The decrease in the effective tax rate for the year ended December 31, 2006 versus the same period in 2005 resulted primarily from an increase in interest income from tax-exempt sources.
Noninterest expense for the three months ended December 31, 2006 was $30.9 million, up from $29.1 million for the same period in 2005. Salaries and employee benefits for the three months ended December 31, 2006 increased $1.3 million over the same period in 2005, mainly from the adoption of FAS 123R, higher salaries from merit increases, and the acquisition of CNB. Professional fees and services increased $0.9 million for the three months ended December 31, 2006, compared with the same period in 2005. This increase was due to several factors, including an increase in courier service expenses due to the acquisition of CNB as well as increasing transportation costs. Item processing fees during the period increased because the Company outsourced a portion of its item processing work as a result of flood-related damage to one of its processing centers. Amortization expense increased $0.2 million for the three months ended December 31, 2006, over the same period in 2005. This increase was due primarily to the acquisition of CNB. Loan collection and other real estate-owned expenses increased $0.4 million for the three months ended December 31, 2006, compared with the same period in 2005. This increase was due primarily to an increase in the number of foreclosures in 2006 compared with 2005. In addition, the Company was able to recoup foreclosure-related expenses from borrowers in 2005 because properties were sold prior to foreclosure during the period. Other operating expense for the three months ended December 31, 2006 decreased $1.2 million compared with the same period in 2005. Contributing to this decrease were expenses incurred in the 4th quarter of 2005 related to branch closings in anticipation of the CNB acquisition. Income tax expense for the three months ended December 31, 2006 was $5.7 million, equivalent to the income tax expense of $5.7 million for the three months ended December 31, 2005. The effective rate for the three months ended December 31, 2006 was 29.6%, down from 30.5% for the same period in 2005. The decrease in the effective tax rate for the three months ended December 31, 2006 versus the same period in 2005 resulted primarily from an increase in interest income from tax-exempt sources.
Balance Sheet
Total assets were $5.1 billion at December 31, 2006, up $0.7 billion from $4.4 billion at December 31, 2005. Loans and leases increased $0.4 billion or 12.9% from $3.0 billion at December 31, 2005, to $3.4 billion at December 31, 2006, due in large part to the acquisition of CNB and growth from consumer and commercial loan products. Total deposits were $3.8 billion at December 31, 2006, up 20.1% from the same period at December 31, 2005, also due in large part to the acquisition of CNB. Stockholders' equity was $403.8 million, representing total equity to total assets of 7.94% at December 31, 2006, compared with $333.9 million or a total equity to total asset ratio of 7.54% at December 31, 2005. In addition, the Company adopted Statement of Financial Accounting Standard No. 158 (FAS 158) "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132( R)" as of December 31, 2006, resulting in a decrease in total equity of $7.4 million. This adoption did not affect regulatory capital ratios at December 31, 2006.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 766,004 shares of its common stock during the year ended December 31, 2006, for a total of $17.1 million at an average price of $22.34 per share. For the three months ended December 31, 2006, the Company did not purchase any shares of its common stock. At December 31, 2006, there were 737,147 shares available for repurchase under previously announced plans.
Dividend Declared
The NBT Board of Directors declared a fourth-quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on March 15, 2007, to shareholders of record as of March 1, 2007.
Corporate Overview
NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.1 billion at December 31, 2006. 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 118 locations, including 80 NBT Bank offices in upstate New York and 38 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville, 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.hathawayagency.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
2006 2005 Change Change
------------ ------------ ------------ -------
(dollars in thousands,
except per share data)
Three Months Ended
December 31,
Net Income $ 13,648 $ 12,995 $ 653 5%
Diluted Earnings Per
Share $ 0.40 $ 0.40 $ 0.00 0%
Weighted Average Diluted
Common Shares
Outstanding 34,402,113 32,556,147 1,845,966 6%
Return on Average Assets
(1) 1.07% 1.17% -0.10% -9%
Return on Average Equity
(1) 13.31% 15.47% -2.16% -14%
Net Interest Margin (2) 3.63% 3.97% -0.34% -9%
============ ============ ============ =======
Twelve Months Ended
December 31,
Net Income $ 55,947 $ 52,438 $ 3,509 7%
Diluted Earnings Per
Share $ 1.64 $ 1.60 $ 0.04 2%
Weighted Average Diluted
Common Shares
Outstanding 34,206,070 32,710,425 1,495,645 5%
Return on Average Assets 1.14% 1.21% -0.07% -6%
Return on Average Equity 14.47% 15.86% -1.39% -9%
Net Interest Margin (2) 3.70% 4.01% -0.31% -8%
============ ============ ============ =======
Asset Quality December 31, December 31,
2006 2005
------------ ------------
Nonaccrual Loans $ 13,665 $ 13,419
90 Days Past Due and
Still Accruing $ 1,642 $ 878
Total Nonperforming
Loans $ 15,307 $ 14,297
Other Real Estate Owned
(OREO) $ 389 $ 265
Total Nonperforming
Assets $ 15,696 $ 14,562
Allowance for Loan and
Lease Losses $ 50,587 $ 47,455
Year-to-Date (YTD) Net
Charge-Offs $ 8,673 $ 6,941
Allowance for Loan and
Lease Losses to Total
Loans and Leases 1.48% 1.57%
Total Nonperforming
Loans to Total Loans
and Leases 0.45% 0.47%
Total Nonperforming
Assets to Total Assets 0.31% 0.33%
Allowance for Loan and
Lease Losses to Total
Nonperforming Loans 330.48% 331.92%
Annualized Net
Charge-Offs to YTD
Average Loans and
Leases 0.26% 0.23%
============ ============
Capital
Equity to Assets 7.94% 7.54%
Book Value Per Share $ 11.79 $ 10.34
Tangible Book Value Per
Share $ 8.42 $ 8.75
Tier 1 Leverage Ratio 7.57% 7.16%
Tier 1 Capital Ratio 10.42% 9.80%
Total Risk-Based Capital
Ratio 11.67% 11.05%
============ ============
Quarterly Common Stock Price
2006 2005 2004
High Low High Low High Low
Quarter End ------- ------- ------- ------- ------- -------
March 31 $ 23.90 $ 21.02 $ 25.66 $ 21.48 $ 23.00 $ 21.21
June 30 $ 23.24 $ 21.03 24.15 20.10 23.18 19.92
September 30 $ 24.57 $ 21.44 25.50 22.79 24.34 21.02
December 31 $ 26.47 $ 22.36 23.79 20.75 26.84 21.94
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2006 2005 Change Change
----------- ----------- ---------- -------
(dollars in thousands,
except per share data)
Balance Sheet as of
December 31,
Loans and Leases $ 3,412,654 $ 3,022,657 $ 389,997 13%
Earning Assets $ 4,712,085 $ 4,129,350 $ 582,735 14%
Total Assets $ 5,087,572 $ 4,426,773 $ 660,799 15%
Deposits $ 3,796,238 $ 3,160,196 $ 636,042 20%
Stockholders' Equity $ 403,817 $ 333,943 $ 69,874 21%
=========== =========== ========== =======
Average Balances
Quarter Ended December 31,
Loans and Leases $ 3,394,024 $ 3,012,561 $ 381,463 13%
Securities Available For Sale
(excluding unrealized gains
or losses) $ 1,119,271 $ 965,742 $ 153,529 16%
Securities Held To Maturity $ 136,511 $ 92,054 $ 44,457 48%
Regulatory Equity Investment $ 36,995 $ 39,277 $ (2,282) -6%
Short-Term Interest Bearing
Accounts $ 7,492 $ 7,676 $ (184) -2%
Total Earning Assets $ 4,694,293 $ 4,117,310 $ 576,983 14%
Total Assets $ 5,064,116 $ 4,393,140 $ 670,976 15%
Interest Bearing Deposits $ 3,206,084 $ 2,602,145 $ 603,939 23%
Non-Interest Bearing Deposits $ 625,301 $ 571,999 $ 53,302 9%
Short-Term Borrowings $ 294,750 $ 396,077 $ (101,327) -26%
Long-Term Borrowings $ 471,149 $ 439,798 $ 31,351 7%
Total Interest Bearing
Liabilities $ 3,971,983 $ 3,438,020 $ 533,963 16%
Stockholders' Equity $ 406,771 $ 333,450 $ 73,321 22%
=========== =========== ========== =======
Average Balances
Twelve Months Ended
December 31,
Loans and Leases $ 3,302,080 $ 2,959,256 $ 342,824 12%
Securities Available For Sale
(excluding unrealized gains
or losses) $ 1,110,405 $ 954,461 $ 155,944 16%
Securities Held To Maturity $ 115,636 $ 88,244 $ 27,392 31%
Regulatory Equity Investment $ 39,437 $ 37,607 $ 1,830 5%
Short-Term Interest Bearing
Accounts $ 8,116 $ 7,298 $ 818 11%
Total Earning Assets $ 4,575,674 $ 4,046,866 $ 528,808 13%
Total Assets $ 4,925,070 $ 4,326,155 $ 598,915 14%
Interest Bearing Deposits $ 3,054,006 $ 2,615,833 $ 438,173 17%
Non-Interest Bearing Deposits $ 614,055 $ 543,077 $ 70,978 13%
Short-Term Borrowings $ 331,255 $ 353,644 $ (22,389) -6%
Long-Term Borrowings $ 485,031 $ 430,487 $ 54,544 13%
Total Interest Bearing
Liabilities $ 3,870,292 $ 3,399,964 $ 470,328 14%
Stockholders' Equity $ 386,553 $ 330,676 $ 55,877 17%
=========== =========== ========== =======
NBT Bancorp Inc. and Subsidiaries December 31, December 31,
Consolidated Balance Sheets (unaudited) 2006 2005
-------------- --------------
(in thousands)
ASSETS
Cash and due from banks $ 130,936 $ 134,501
Short term interest bearing accounts 7,857 7,987
Securities available for sale, at fair value 1,106,322 954,474
Securities held to maturity (fair value of
$136,287 and $93,701 at December 31, 2006
and December 31, 2005) 136,314 93,709
Federal Reserve and Federal Home Loan Bank
stock 38,812 40,259
Loans and leases 3,412,654 3,022,657
Less allowance for loan and lease losses 50,587 47,455
============== ==============
Net loans and leases 3,362,067 2,975,202
Premises and equipment, net 66,982 63,693
Goodwill 103,356 47,544
Intangible assets, net 11,984 3,808
Bank owned life insurance 41,783 33,648
Other assets 81,159 71,948
-------------- --------------
TOTAL ASSETS $ 5,087,572 $ 4,426,773
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 646,377 $ 593,422
Savings, NOW, and money market 1,566,557 1,325,166
Time 1,583,304 1,241,608
-------------- --------------
Total deposits 3,796,238 3,160,196
Short-term borrowings 345,408 444,977
Long-term debt 417,728 414,330
Trust preferred debentures 75,422 23,875
Other liabilities 48,959 49,452
-------------- --------------
Total liabilities 4,683,755 4,092,830
Total stockholders' equity 403,817 333,943
============== ==============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,087,572 $ 4,426,773
============== ==============
NBT Bancorp Inc. and
Subsidiaries Three months ended Twelve months ended
Consolidated Statements of December 31, December 31,
Income (unaudited) 2006 2005 2006 2005
---------- --------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend
income:
Loans and leases $ 60,795 $ 50,726 $ 230,042 $ 189,714
Securities available for sale 13,296 10,544 51,599 41,120
Securities held to maturity 1,409 913 4,730 3,407
Other 517 575 2,471 2,126
---------- --------- --------- ---------
Total interest, fee and
dividend income 76,017 62,758 288,842 236,367
---------- --------- --------- ---------
Interest expense:
Deposits 25,652 14,352 87,798 49,932
Short-term borrowings 3,572 3,911 15,448 10,984
Long-term debt 4,091 4,098 17,063 16,114
Trust preferred debentures 1,277 375 4,700 1,226
---------- --------- --------- ---------
Total interest expense 34,592 22,736 125,009 78,256
---------- --------- --------- ---------
Net interest income 41,425 40,022 163,833 158,111
Provision for loan and lease
losses 3,484 2,596 9,395 9,464
---------- --------- --------- ---------
Net interest income after
provision for loan and lease
losses 37,941 37,426 154,438 148,647
---------- --------- --------- ---------
Noninterest income:
Trust 1,387 1,234 5,629 5,029
Service charges on deposit
accounts 4,418 4,340 17,590 16,894
ATM and debit card fees 1,764 1,587 7,086 6,162
Broker/dealer and insurance
revenue 1,037 527 3,936 3,186
Net securities gains (losses) 30 (546) (875) (1,236)
Bank owned life insurance
income 425 342 1,629 1,347
Retirement plan administration
fees 1,424 1,212 5,536 4,426
Other 1,847 1,736 8,098 6,741
---------- --------- --------- ---------
Total noninterest income 12,332 10,432 48,629 42,549
---------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits 15,166 13,863 62,877 60,005
Office supplies and postage 1,418 1,222 5,330 4,628
Occupancy 2,739 2,689 11,518 10,452
Equipment 2,069 2,120 8,332 8,118
Professional fees and outside
services 2,502 1,584 7,761 6,087
Data processing and
communications 2,466 2,548 10,454 10,349
Amortization of intangible
assets 389 142 1,649 544
Loan collection and other real
estate owned 629 278 1,351 1,002
Other operating 3,504 4,703 13,694 14,120
---------- --------- --------- ---------
Total noninterest expense 30,882 29,149 122,966 115,305
---------- --------- --------- ---------
Income before income taxes 19,391 18,709 80,101 75,891
Income taxes 5,743 5,714 24,154 23,453
---------- --------- --------- ---------
Net income $ 13,648 $ 12,995 $ 55,947 $ 52,438
---------- --------- --------- ---------
Earnings Per Share:
Basic $ 0.40 $ 0.40 $ 1.65 $ 1.62
Diluted $ 0.40 $ 0.40 $ 1.64 $ 1.60
========== ========= ========= =========
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements
of Income (unaudited) 4Q 3Q 2Q 1Q 4Q
2006 2006 2006 2006 2005
--------- --------- --------- -------- --------
(in thousands, except per
share data)
Interest, fee and
dividend income:
Loans and leases $ 60,795 $ 59,329 $ 57,085 $ 52,833 $ 50,726
Securities available for
sale 13,296 13,342 13,084 11,877 10,544
Securities held to
maturity 1,409 1,293 1,043 985 913
Other 517 724 619 611 575
--------- --------- --------- -------- --------
Total interest, fee and
dividend income 76,017 74,688 71,831 66,306 62,758
--------- --------- --------- -------- --------
Interest expense:
Deposits 25,652 24,052 20,869 17,225 14,352
Short-term borrowings 3,572 3,828 4,111 3,937 3,911
Long-term debt 4,091 4,603 4,227 4,142 4,098
Trust preferred
debentures 1,277 1,285 1,255 883 375
--------- --------- --------- -------- --------
Total interest expense 34,592 33,768 30,462 26,187 22,736
--------- --------- --------- -------- --------
Net interest income 41,425 40,920 41,369 40,119 40,022
Provision for loan and
lease losses 3,484 2,480 1,703 1,728 2,596
--------- --------- --------- -------- --------
Net interest income after
provision for loan and
lease losses 37,941 38,440 39,666 38,391 37,426
--------- --------- --------- -------- --------
Noninterest income:
Trust 1,387 1,425 1,459 1,358 1,234
Service charges on
deposit accounts 4,418 4,460 4,493 4,219 4,340
ATM and debit card fees 1,764 1,888 1,789 1,645 1,587
Broker/dealer and
insurance fees 1,037 1,024 967 908 527
Net securities gains
(losses) 30 7 22 (934) (546)
Bank owned life insurance
income 425 431 392 381 342
Retirement plan
administration fees 1,424 1,450 1,431 1,231 1,212
Other 1,847 1,832 2,003 2,416 1,736
--------- --------- --------- -------- --------
Total noninterest
income 12,332 12,517 12,556 11,224 10,432
--------- --------- --------- -------- --------
Noninterest expense:
Salaries and employee
benefits 15,166 15,628 16,335 15,748 13,863
Office supplies and
postage 1,418 1,275 1,456 1,181 1,222
Occupancy 2,739 3,044 2,747 2,988 2,689
Equipment 2,069 2,040 2,067 2,156 2,120
Professional fees and
outside services 2,502 1,627 1,800 1,832 1,584
Data processing and
communications 2,466 2,637 2,649 2,702 2,548
Amortization of
intangible assets 389 471 466 323 142
Loan collection and other
real estate owned 629 222 289 211 278
Other operating 3,504 2,974 3,885 3,331 4,703
--------- --------- --------- -------- --------
Total noninterest
expense 30,882 29,918 31,694 30,472 29,149
--------- --------- --------- -------- --------
Income before income
taxes 19,391 21,039 20,528 19,143 18,709
Income taxes 5,743 6,497 6,359 5,555 5,714
--------- --------- --------- -------- --------
Net income $ 13,648 $ 14,542 $ 14,169 $ 13,588 $ 12,995
========= ========= ========= ======== ========
Earnings per share:
Basic $ 0.40 $ 0.43 $ 0.41 $ 0.41 $ 0.40
Diluted $ 0.40 $ 0.43 $ 0.41 $ 0.40 $ 0.40
========= ========= ========= ======== ========
SOURCE: NBT Bancorp Inc.