NBT Bancorp Inc. Announces Annual Earnings of $57.4 Million and Second Highest Earnings in Company's History at $1.66; Declares Cash Dividend
NORWICH, NY, Jan 24, 2011 (MARKETWIRE via COMTEX) --
NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the year ended December 31, 2010 was $1.66 per share, as compared with $1.53 per share for the year ended December 31, 2009. Return on average assets and return on average equity were 1.05% and 10.92%, respectively, for the year ended December 31, 2010, compared with 0.96% and 10.90%, respectively, for the year ended December 31, 2009. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.15% for the year ended December 31, 2010, up 11 basis points ("bp") from 4.04% for the year ended December 31, 2009. Net income for the year ended December 31, 2010 was $57.4 million, up $5.4 million, or 10.4%, from the year ended December 31, 2009.
Net income per diluted share for the three months ended December 31, 2010 was $0.42, as compared with $0.40 per share for the three months ended December 31, 2009. Annualized return on average assets and return on average equity were 1.05% and 10.68%, respectively, for the three months ended December 31, 2010, compared with 1.00% and 10.92%, respectively, for the three months ended December 31, 2009. FTE net interest margin was 4.09% for the three months ended December 31, 2010, down 6 bp from 4.15% for the three months ended December 31, 2009. Net income for the three months ended December 31, 2010 was $14.4 million, up $0.6 million, or 4.6%, from $13.8 million for the fourth quarter last year.
Selected highlights for 2010 include:
-- Net income of $57.4 million approached our record high of
$58.4 million in 2008.
-- Diluted earnings per share of $1.66 was the second highest in the
history of the Company.
-- Asset quality indicators continued to stabilize. While nonperforming
and potential problem loans are up slightly from 2009, past due loans
and net charge-offs are both down from 2009.
-- Net interest margin of 4.15% in 2010 was the highest since 2003.
-- Noninterest income of $83.9 million in 2010 was an all-time high.
-- Continued strategic expansion in Queensbury and Schenectady, NY and
Williston, VT during 2010.
NBT President and CEO Martin Dietrich said, "I am pleased to report that NBT achieved near record results in 2010, including the second highest net income and earnings per share levels in the history of the Company. While the economy and the financial services industry continued to face challenges in 2010, our team remained focused on aggressively managing our conservative banking strategy, as well as continued strategic investment and new market expansion to support future growth. Ultimately, our success flows directly from the quality of our team members and their commitment to serving the needs of our customers."
Loan and Lease Quality and Provision for Loan and Lease Losses
Past due loans as a percentage of total loans has improved to 0.86% at December 31, 2010, as compared with 0.89% at December 31, 2009. Nonperforming loans increased slightly to $44.8 million or 1.24% of total loans and leases at December 31, 2010 compared with $41.3 million or 1.13% at December 31, 2009, primarily due to one large commercial credit of approximately $2.7 million.
Net charge-offs for the year ended December 31, 2010 were $25.1 million compared to $25.4 million for the year ended December 31, 2009. Net charge-offs to average loans and leases for the year ended December 31, 2010 was 0.69%, a slight improvement from 0.70% for the year ended December 31, 2009. Net charge-offs for the three months ended December 31, 2010 were $7.3 million compared to $6.7 million for the same period in 2009. The annualized net charge-off ratio for the three months ended December 31, 2010 was 0.81% compared to 0.74% for the three months ended December 31, 2009. The primary driver for this increase was the charge-off of one large commercial credit of approximately $1.2 million which was previously fully provided for in the quarter ending September 30, 2010.
The allowance for loan and lease losses totaled $71.2 million at December 31, 2010 as compared with $66.6 million at December 31, 2009. The allowance for loan and lease losses as a percentage of loans and leases was 1.97% at December 31, 2010 as compared to 1.83% at December 31, 2009. The increase in the allowance for loan and lease losses is primarily due to an increase in the general allocation of the allowance for loan and lease losses relative to certain portfolios, including commercial, residential and home equity loans.
The Company recorded a provision for loan and lease losses of $29.8 million during the year ended December 31, 2010, as compared with $33.4 million during the year ended December 31, 2009. The Company recorded a provision for loan and lease losses of $6.7 million during the fourth quarter of 2010 compared with $8.6 million during the fourth quarter of 2009. The decrease in total provision is due to ongoing modeling of the required levels of reserves which considers historical charge-offs, loan growth and economic trends.
Net Interest Income
Net interest income was up 3.1% to $202.5 million for the year ended December 31, 2010 compared with $196.5 million for the year ended December 31, 2009. The Company's FTE net interest margin was 4.15% for the year ended December 31, 2010, as compared with 4.04% for the year ended December 31, 2009. The Company has chosen to maintain its excess liquidity position in 2010 as a result of the unfavorable interest rate environment. As a result of this excess liquidity, our Federal Funds sold position had a net negative impact of approximately 5 bp on our net interest margin for the year ended December 31, 2010 as compared to the year ended December 31, 2009.
The yield on interest earning assets decreased 37 bp for the year ended December 31, 2010 as compared with the year ended December 31, 2009, primarily due to decreases in the yields on securities available for sale and loans and leases. The yield on securities available for sale was 3.56% for the year ended December 31, 2010, as compared with 4.47% for the year ended December 31, 2009, while the yield on loans and leases was 5.90% for the year ended December 31, 2010, as compared with 6.07% for the year ended December 31, 2009. The rate on interest bearing liabilities declined 53 bp for the year ended December 31, 2010 as compared with the year ended December 31, 2009, primarily due to decreases in the rate on interest bearing deposits. The rate on time deposits was 2.06% for the year ended December 31, 2010, as compared with 2.64% for the year ended December 31, 2009. The rate on money market deposit accounts was 0.57% for the year ended December 31, 2010, as compared with 1.20% for the year ended December 31, 2009.
Net interest income was down slightly to $50.5 million for the three months ended December 31, 2010 compared with $51.6 million for the three months ended December 31, 2009. The Company's FTE net interest margin was 4.09% for the three months ended December 31, 2010, as compared with 4.15% for the three months ended December 31, 2009. As a result of the Company's excess liquidity, our Federal Funds sold position had a net negative impact of approximately 2 bp on our net interest margin for the three months ended December 31, 2010 as compared to the three months ended December 31, 2009.
The yield on interest earning assets decreased 40 bp for the three months ended December 31, 2010 as compared with the three months ended December 31, 2009, primarily due to decreases in the yields on securities available for sale and loans and leases. The yield on securities available for sale was 3.05% for the three months ended December 31, 2010, as compared with 4.07% for the three months ended December 31, 2009, while the yield on loans and leases was 5.85% for the three months ended December 31, 2010, as compared with 6.07% for the three months ended December 31, 2009. The rate on interest bearing liabilities declined 38 bp for the three months ended December 31, 2010 as compared with the three months ended December 31, 2009, primarily due to decreases in the rate on interest bearing deposits. The rate on time deposits was 1.94% for the three months ended December 31, 2010, as compared with 2.23% for the three months ended December 31, 2009. The rate on money market deposit accounts was 0.44% for the three months ended December 31, 2010, as compared with 0.88% for the three months ended December 31, 2009.
Noninterest Income
Noninterest income for the year ended December 31, 2010 was $83.9 million, up $3.8 million or 4.7% from $80.1 million for the year ended December 31, 2009. The increase in noninterest income was due primarily to an increase in net securities gains of approximately $3.1 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009 due primarily to the sale of two equity positions and certain collateralized mortgage obligations ("CMO's") during 2010. In addition, the Company experienced an increase in retirement plan administration fees of approximately $1.3 million for the year ended December 31, 2010 as compared with the year ended December 31, 2009 as a result of organic growth and increased asset values from improved market conditions. Insurance and other financial services revenue increased approximately $1.1 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009, due primarily to new business and expansion into new markets within our footprint. Trust revenue increased approximately $1.0 million for the year ended December 31, 2010 as compared to the year ended December 31, 2009 due primarily to an increase in fair market value of trust assets under administration. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $3.1 million as a result of a decrease in overdraft activity due to changes in consumer behavior caused by economic conditions as well as the effects of implementing new regulations regarding overdraft fees.
Noninterest income for the three months ended December 31, 2010 was $22.2 million, up $2.4 million or 12.0% from $19.8 million for the same period in 2009. Net securities gains increased approximately $2.1 million for the three months ended December 31, 2010 as compared to the same period in 2009. This increase was due primarily to the sale of one equity position and certain CMO's in the three months ending December 31, 2010. Slight increases in ATM and debit card fees and insurance and other financial services revenue also contributed to the increase in noninterest income. These increases were offset by a decrease in service charges on deposit accounts of approximately $1.2 million, or 16.9%, for the three months ended December 31, 2010 as compared with the same period in 2009. The decrease in service charges was the result of the aforementioned decrease in overdraft activity due to changes in consumer behavior caused by economic conditions as well as the effects of implementing new regulations regarding overdraft fees.
Noninterest Expense and Income Tax Expense
Noninterest expense for the year ended December 31, 2010 was $178.3 million, up from $170.6 million, or 4.5%, for the year ended December 31, 2009. Salaries and employee benefits increased $8.2 million, or 9.5%, for the year ended December 31, 2010 compared with the year ended December 31, 2009. This increase was due primarily to increases in full-time-equivalent employees (primarily driven by market expansions), merit increases, employee benefits, and incentive compensation. In addition, the Company incurred debt prepayment penalties totaling $4.5 million to pay off long-term debt during the year ended December 31, 2010, as compared with prepayment penalties totaling $0.8 million for the year ended December 31, 2009. The debt prepayments in 2010 benefited interest expense by approximately $1.0 million in 2010, with future benefits expected in 2011 and 2012. These increases were partially offset by a decrease in FDIC expenses of approximately $2.3 million for the year ended December 31, 2010, as compared with the year ended December 31, 2009. This decrease resulted from the special assessment levied by the FDIC in the second quarter of 2009. In addition, professional fees and outside services decreased by $1.5 million, or 14.0%, for the year ended December 31, 2010 as compared with the year ended December 31, 2009. This decrease was due primarily to nonrecurring legal fees incurred during 2009 related to de novo branch activity as well as non-recurring systems consulting services incurred in 2009. Income tax expense for the year ended December 31, 2010 was $20.9 million, up slightly from $20.6 million for the year ended December 31, 2009. The effective tax rate was 26.7% for the year ended December 31, 2010, as compared to 28.4% for the year ended December 31, 2009. This decrease in the effective tax rate is primarily the result of an amendment to New York State tax law to conform to the bad debt treatment afforded under Federal law, which resulted in a reduction to tax expense of $0.6 million, as well as a favorable New York State audit settlement, which resulted in a reduction to tax expense of $0.6 million for the year ended December 31, 2010.
Noninterest expense for the three months ended December 31, 2010 was $47.3 million, up from $45.3 million, or 4.3%, for the same period in 2009. The Company incurred debt prepayment penalties totaling $3.3 million to pay off long-term debt during the fourth quarter of 2010, as compared to prepayment penalties totaling $0.8 million for the same period in 2009. Salaries and employee benefits, occupancy, and loan collection expenses were up slightly for the three months ended December 31, 2010 as compared to the same period in 2009. These increases were partially offset by a decrease in other operating expenses of approximately $1.0 million for the three month period ended December 31, 2010, as compared with the three months ended December 31, 2009. This decrease resulted primarily from 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, 2010 was $4.4 million, up from $3.7 million for the same period in 2009. The effective tax rate was 23.2% for the three months ended December 31, 2010, as compared to 21.3% for the same period in 2009.
Balance Sheet
Total assets were $5.3 billion at December 31, 2010, down $125.2 million or 2.3% from December 31, 2009. Loans and leases were $3.6 billion at December 31, 2010, down $35.4 million from December 31, 2009. Total deposits were $4.1 billion at December 31, 2010, up $41.3 million from December 31, 2009. Stockholders' equity was $533.6 million, representing a total equity-to-total assets ratio of 9.99% at December 31, 2010, compared with $505.1 million or a total equity-to-total assets ratio of 9.24% at December 31, 2009.
Stock Repurchase Program
Under previously disclosed stock repurchase plans, the Company purchased 23,810 shares of its common stock during the year ended December 31, 2010, for a total of $0.5 million at an average price of $20.03 per share. At December 31, 2010, there were 976,190 shares available for repurchase under this previously announced stock repurchase plan. This plan was authorized on October 26, 2009 in the amount of 1,000,000 shares and expires on December 31, 2011.
Dividend Declared
The NBT Board of Directors declared a 2011 first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2011 to shareholders of record as of March 1, 2011.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.3 billion at December 31, 2010. 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 124 locations, including 85 NBT Bank offices in upstate New York, two NBT Bank offices in northwestern Vermont and 37 Pennstar Bank offices in northeastern Pennsylvania. 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
2010 2009 Change Change
------------- ------------- ---------- ---------
(dollars in thousands,
except per share data)
Three Months Ended
December 31,
Net Income $ 14,434 $ 13,801 $ 633 5%
Diluted Earnings Per
Share $ 0.42 $ 0.40 $ 0.02 5%
Weighted Average
Diluted Common Shares
Outstanding 34,590,063 34,348,189 241,874 1%
Return on Average
Assets (1) 1.05% 1.00% 5 bp 5%
Return on Average
Equity (1) 10.68% 10.92% -24 bp -2%
Net Interest Margin (2) 4.09% 4.15% -6 bp -1%
------------- ------------- ---------- ---------
Year Ended December 31,
Net Income $ 57,404 $ 52,011 $ 5,393 10%
Diluted Earnings Per
Share $ 1.66 $ 1.53 $ 0.13 8%
Weighted Average
Diluted Common Shares
Outstanding 34,508,959 33,902,517 606,442 2%
Return on Average
Assets 1.05% 0.96% 9 bp 9%
Return on Average
Equity 10.92% 10.90% 2 bp 0%
Net Interest Margin (2) 4.15% 4.04% 11 bp 3%
------------- ------------- ---------- ---------
Asset Quality December 31, December 31,
2010 2009
------------- -------------
Nonaccrual Loans $ 42,467 $ 38,746
90 Days Past Due and
Still Accruing $ 2,325 $ 2,526
Total Nonperforming
Loans $ 44,792 $ 41,272
Other Real Estate Owned $ 901 $ 2,358
Total Nonperforming
Assets $ 45,693 $ 43,630
Past Due Loans $ 31,004 $ 32,349
Potential Problem Loans $ 82,247 $ 79,072
Allowance for Loan and
Lease Losses $ 71,234 $ 66,550
Year-to-Date (YTD) Net
Charge-Offs $ 25,125 $ 25,406
Allowance for Loan and
Lease Losses to Total
Loans and Leases 1.97% 1.83%
Total Nonperforming
Loans to Total Loans
and Leases 1.24% 1.13%
Total Nonperforming
Assets to Total Assets 0.86% 0.80%
Past Due Loans to Total
Loans and Leases 0.86% 0.89%
Allowance for Loan and
Lease Losses to Total
Nonperforming Loans 159.03% 161.25%
Net Charge-Offs to YTD
Average Loans and
Leases 0.69% 0.70%
------------- ------------- ---------- ---------
Capital
Equity to Assets 9.99% 9.24%
Book Value Per Share $ 15.51 $ 14.69
Tangible Book Value Per
Share $ 11.67 $ 10.75
Tier 1 Leverage Ratio 9.16% 8.35%
Tier 1 Capital Ratio 12.44% 11.34%
Total Risk-Based
Capital Ratio 13.70% 12.59%
------------- ------------- ---------- ---------
Quarterly Common Stock
Price 2010 2009
Quarter End High Low High Low
------- ------ ------- ------
March 31 $ 23.99 $19.15 $ 28.37 $15.42
June 30 $ 25.96 $20.33 $ 25.22 $20.49
September 30 $ 23.06 $19.27 $ 24.16 $20.57
December 31 $ 24.96 $21.41 $ 23.59 $19.43
--------------- ---------------
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
December 31, December 31, Net Percent
2010 2009 Change Change
--------------- --------------- --------- -----
(dollars in thousands, except
per share data)
Balance Sheet
Loans and Leases $ 3,610,006 $ 3,645,398 $ (35,392) -1%
Earning Assets $ 4,914,972 $ 5,009,251 $ (94,279) -2%
Total Assets $ 5,338,856 $ 5,464,026 $(125,170) -2%
Deposits $ 4,134,352 $ 4,093,046 $ 41,306 1%
Stockholders' Equity $ 533,572 $ 505,123 $ 28,449 6%
--------------- --------------- --------- -----
2010 2009
--------------- ---------------
(dollars in thousands, except
Average Balances per share data)
Three Months Ended
December 31,
Loans and Leases $ 3,603,867 $ 3,628,244 $ (24,377)
Securities Available For
Sale (excluding
unrealized gains or
losses) $ 1,097,887 $ 1,124,877 $ (26,990)
Securities Held To
Maturity $ 100,204 $ 165,108 $ (64,904)
Trading Securities $ 2,703 $ 2,312 $ 391
Regulatory Equity
Investment $ 28,911 $ 37,091 $ (8,180)
Short-Term Interest
Bearing Accounts $ 187,099 $ 122,104 $ 64,995
Total Earning Assets $ 5,017,968 $ 5,077,424 $ (59,456)
Total Assets $ 5,449,848 $ 5,499,273 $ (49,425)
Interest Bearing Deposits $ 3,334,559 $ 3,352,879 $ (18,320)
Non-Interest Bearing
Deposits $ 854,361 $ 748,451 $ 105,910
Short-Term Borrowings $ 164,311 $ 159,050 $ 5,261
Long-Term Borrowings $ 482,279 $ 654,592 $(172,313)
Total Interest Bearing
Liabilities $ 3,981,149 $ 4,166,521 $(185,372)
Stockholders' Equity $ 536,197 $ 501,225 $ 34,972
--------------- --------------- ---------
Average Balances
Year Ended December 31,
Loans and Leases $ 3,629,047 $ 3,641,852 $ (12,805)
Securities Available For
Sale (excluding
unrealized gains or
losses) $ 1,088,376 $ 1,095,609 $ (7,233)
Securities Held To
Maturity $ 128,727 $ 151,078 $ (22,351)
Trading Securities $ 2,563 $ 1,929 $ 634
Regulatory Equity
Investment $ 31,850 $ 37,878 $ (6,028)
Short-Term Interest
Bearing Accounts $ 137,818 $ 88,012 $ 49,806
Total Earning Assets $ 5,015,818 $ 5,014,429 $ 1,389
Total Assets $ 5,454,334 $ 5,429,009 $ 25,325
Interest Bearing Deposits $ 3,340,873 $ 3,340,735 $ 138
Non-Interest Bearing
Deposits $ 805,594 $ 718,580 $ 87,014
Short-Term Borrowings $ 158,280 $ 140,066 $ 18,214
Long-Term Borrowings $ 544,931 $ 676,461 $(131,530)
Total Interest Bearing
Liabilities $ 4,044,084 $ 4,157,262 $(113,178)
Stockholders' Equity $ 525,474 $ 477,299 $ 48,175
--------------- --------------- ---------
NBT Bancorp Inc. and Subsidiaries December December
Consolidated Balance Sheets (unaudited) 31, 2010 31, 2009
----------- -----------
(in thousands)
ASSETS
Cash and due from banks $ 99,673 $ 107,980
Short term interest bearing accounts 69,119 79,181
Securities available for sale, at fair value 1,129,368 1,116,758
Securities held to maturity (fair value of $98,759
and $161,851 at December 31, 2010
and December 31, 2009, respectively) 97,310 159,946
Trading securities 2,808 2,410
Federal Reserve and Federal Home Loan Bank stock 27,246 35,979
Loans and leases 3,610,006 3,645,398
Less allowance for loan and lease losses 71,234 66,550
=========== ===========
Net loans and leases 3,538,772 3,578,848
Premises and equipment, net 67,404 66,221
Goodwill 114,841 114,938
Intangible assets, net 17,543 20,590
Bank owned life insurance 75,301 74,751
Other assets 99,471 106,424
----------- -----------
TOTAL ASSETS $ 5,338,856 $ 5,464,026
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 911,741 $ 789,989
Savings, NOW, and money market 2,291,833 2,269,779
Time 930,778 1,033,278
----------- -----------
Total deposits 4,134,352 4,093,046
Short-term borrowings 159,434 155,977
Long-term debt 369,874 554,698
Trust preferred debentures 75,422 75,422
Other liabilities 66,202 79,760
----------- -----------
Total liabilities 4,805,284 4,958,903
Total stockholders' equity 533,572 505,123
=========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,338,856 $ 5,464,026
=========== ===========
Three months ended Year ended
NBT Bancorp Inc. and Subsidiaries December 31, December 31,
Consolidated Statements of Income
(unaudited) 2010 2009 2010 2009
--------- -------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $ 52,933 $ 55,361 $ 213,429 $ 220,324
Securities available for sale 7,944 10,810 36,167 45,972
Securities held to maturity 845 1,212 3,968 4,894
Other 627 621 2,174 2,203
--------- -------- --------- ---------
Total interest, fee and dividend
income 62,349 68,004 255,738 273,393
--------- -------- --------- ---------
Interest expense:
Deposits 6,727 9,532 30,354 48,496
Short-term borrowings 64 139 402 552
Long-term debt 4,025 5,673 18,314 23,629
Trust preferred debentures 1,034 1,036 4,140 4,247
--------- -------- --------- ---------
Total interest expense 11,850 16,380 53,210 76,924
--------- -------- --------- ---------
Net interest income 50,499 51,624 202,528 196,469
Provision for loan and lease losses 6,687 8,641 29,809 33,392
--------- -------- --------- ---------
Net interest income after provision
for loan and lease losses 43,812 42,983 172,719 163,077
--------- -------- --------- ---------
Noninterest income:
Trust 2,261 1,881 7,722 6,719
Service charges on deposit accounts 5,657 6,808 24,041 27,165
ATM and debit card fees 2,546 2,346 10,035 9,339
Insurance and other financial
services revenue 4,327 3,799 18,867 17,725
Net securities gains (losses) 2,063 (2) 3,274 144
Bank owned life insurance income 872 910 3,316 3,135
Retirement plan administration fees 2,759 2,739 10,356 9,086
Other 1,751 1,365 6,277 6,818
--------- -------- --------- ---------
Total noninterest income 22,236 19,846 83,888 80,131
--------- -------- --------- ---------
Noninterest expense:
Salaries and employee benefits 23,200 22,919 93,718 85,565
Office supplies and postage 1,564 1,472 6,102 5,857
Occupancy 3,823 3,608 15,350 14,864
Equipment 2,123 2,115 8,317 8,139
Professional fees and outside
services 2,489 2,688 9,032 10,508
Data processing and communications 2,893 3,314 12,347 13,238
Amortization of intangible assets 744 781 3,072 3,246
Loan collection and other real
estate owned 761 589 3,036 2,766
Advertising 1,266 936 3,487 3,455
FDIC expenses 1,347 1,312 6,081 8,408
Prepayment penalty on long-term
debt 3,321 810 4,526 810
Other operating 3,719 4,746 13,223 13,710
--------- -------- --------- ---------
Total noninterest expense 47,250 45,290 178,291 170,566
--------- -------- --------- ---------
Income before income taxes 18,798 17,539 78,316 72,642
Income taxes 4,364 3,738 20,912 20,631
--------- -------- --------- ---------
Net income $ 14,434 $ 13,801 $ 57,404 $ 52,011
--------- -------- --------- ---------
Earnings Per Share:
Basic $ 0.42 $ 0.40 $ 1.67 $ 1.54
Diluted $ 0.42 $ 0.40 $ 1.66 $ 1.53
========= ======== ========= =========
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated
Statements of Income 4Q 3Q 2Q 1Q 4Q
(unaudited) 2010 2010 2010 2010 2009
-------- -------- -------- -------- -------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans and leases $ 52,933 $ 53,301 $ 53,503 $ 53,692 $55,361
Securities available for sale 7,944 8,621 9,556 10,046 10,810
Securities held to maturity 845 908 1,078 1,137 1,212
Other 627 482 469 596 621
-------- -------- -------- -------- -------
Total interest, fee and
dividend income 62,349 63,312 64,606 65,471 68,004
-------- -------- -------- -------- -------
Interest expense:
Deposits 6,727 7,174 7,999 8,454 9,532
Short-term borrowings 64 91 123 124 139
Long-term debt 4,025 4,374 4,850 5,065 5,673
Trust preferred debentures 1,034 1,046 1,033 1,027 1,036
-------- -------- -------- -------- -------
Total interest expense 11,850 12,685 14,005 14,670 16,380
-------- -------- -------- -------- -------
Net interest income 50,499 50,627 50,601 50,801 51,624
Provision for loan and lease
losses 6,687 7,529 6,350 9,243 8,641
-------- -------- -------- -------- -------
Net interest income after
provision for loan and lease
losses 43,812 43,098 44,251 41,558 42,983
-------- -------- -------- -------- -------
Noninterest income:
Trust 2,261 1,786 1,909 1,766 1,881
Service charges on deposit
accounts 5,657 5,953 6,301 6,130 6,808
ATM and debit card fees 2,546 2,660 2,462 2,367 2,346
Insurance and other financial
services revenue 4,327 4,595 4,700 5,245 3,799
Net securities gains/(losses) 2,063 1,120 63 28 (2)
Bank owned life insurance
income 872 655 808 981 910
Retirement plan administration
fees 2,759 2,612 2,595 2,390 2,739
Other 1,751 1,610 1,482 1,434 1,365
-------- -------- -------- -------- -------
Total noninterest income 22,236 20,991 20,320 20,341 19,846
-------- -------- -------- -------- -------
Noninterest expense:
Salaries and employee benefits 23,200 24,090 24,224 22,204 22,919
Office supplies and postage 1,564 1,542 1,454 1,542 1,472
Occupancy 3,823 3,709 3,666 4,152 3,608
Equipment 2,123 2,053 2,041 2,100 2,115
Professional fees and outside
services 2,489 2,068 2,191 2,284 2,688
Data processing and
communications 2,893 2,971 3,265 3,218 3,314
Amortization of intangible
assets 744 767 780 781 781
Loan collection and other real
estate owned 761 548 668 1,059 589
Advertising 1,266 730 825 667 936
FDIC expenses 1,347 1,621 1,560 1,553 1,312
Prepayment penalty on
long-term debt 3,321 1,205 - - 810
Other operating 3,719 3,380 3,523 2,600 4,746
-------- -------- -------- -------- -------
Total noninterest expense 47,250 44,684 44,197 42,160 45,290
-------- -------- -------- -------- -------
Income before income taxes 18,798 19,405 20,374 19,739 17,539
Income taxes 4,364 4,835 5,950 5,763 3,738
-------- -------- -------- -------- -------
Net income $ 14,434 $ 14,570 $ 14,424 $ 13,976 $13,801
======== ======== ======== ======== =======
Earnings per share:
Basic $ 0.42 $ 0.42 $ 0.42 $ 0.41 $ 0.40
Diluted $ 0.42 $ 0.42 $ 0.42 $ 0.41 $ 0.40
======== ======== ======== ======== =======
Three Months ended December 31,
2010 2009
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- -------- ------ ---------- -------- ------
ASSETS
Short-term interest
bearing accounts $ 187,099 $ 135 0.29% $ 122,104 $ 87 0.28%
Securities
available for sale
(1)(excluding
unrealized gains
or losses) 1,097,887 8,433 3.05% 1,124,877 11,552 4.07%
Securities held to
maturity (1) 100,204 1,402 5.55% 165,108 1,832 4.40%
Investment in FRB
and FHLB Banks 28,911 492 6.75% 37,091 533 5.70%
Loans and leases
(2) 3,603,867 53,160 5.85% 3,628,244 55,551 6.07%
---------- -------- ---------- --------
Total interest
earning assets $5,017,968 $ 63,622 5.03% $5,077,424 $ 69,555 5.43%
-------- --------
Other assets 431,880 421,849
---------- ----------
Total assets $5,449,848 $5,499,273
---------- ----------
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Money market
deposit accounts $1,068,707 1,188 0.44% $1,067,763 $ 2,359 0.88%
NOW deposit
accounts 762,567 732 0.38% 688,376 831 0.48%
Savings deposits 555,622 174 0.12% 505,131 195 0.15%
Time deposits 947,663 4,633 1.94% 1,091,609 6,147 2.23%
---------- -------- ---------- --------
Total interest
bearing deposits $3,334,559 $ 6,727 0.80% $3,352,879 $ 9,532 1.13%
Short-term
borrowings 164,311 64 0.16% 159,050 139 0.35%
Trust preferred
debentures 75,422 1,034 5.44% 75,422 1,036 5.45%
Long-term debt 406,857 4,025 3.93% 579,170 5,673 3.89%
---------- -------- ---------- --------
Total interest
bearing
liabilities $3,981,149 $ 11,850 1.18% $4,166,521 $ 16,380 1.56%
-------- --------
Demand deposits 854,361 748,451
Other liabilities 78,141 83,076
Stockholders'
equity 536,197 501,225
---------- ----------
Total liabilities
and stockholders'
equity $5,449,848 $5,499,273
---------- ----------
Net interest
income (FTE) 51,772 53,175
-------- --------
Interest rate
spread 3.85% 3.87%
Net interest margin 4.09% 4.15%
Taxable equivalent
adjustment 1,273 1,551
-------- --------
Net interest income $ 50,499 $ 51,624
(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,
2010 2009
(dollars in Average Yield/ Average Yield/
thousands) Balance Interest Rates Balance Interest Rates
---------- -------- ------ ---------- -------- ------
ASSETS
Short-term interest
bearing accounts $ 137,818 $ 354 0.26% $ 88,012 $ 238 0.27%
Securities
available for sale
(1)(excluding
unrealized gains
or losses) 1,088,376 38,759 3.56% 1,095,609 48,951 4.47%
Securities held to
maturity (1) 128,727 6,104 4.74% 151,078 7,385 4.89%
Investment in FRB
and FHLB Banks 31,850 1,821 5.72% 37,878 1,966 5.19%
Loans and leases
(2) 3,629,047 214,258 5.90% 3,641,852 221,128 6.07%
---------- -------- ---------- --------
Total interest
earning assets $5,015,818 $261,296 5.21% $5,014,429 $279,668 5.58%
-------- --------
Other assets 438,516 414,580
---------- ----------
Total assets $5,454,334 $5,429,009
---------- ----------
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Money market
deposit accounts $1,092,789 6,273 0.57% $1,013,514 $ 12,165 1.20%
NOW deposit
accounts 709,920 2,938 0.41% 600,943 3,159 0.53%
Savings deposits 552,660 797 0.14% 499,079 826 0.17%
Time deposits 985,504 20,346 2.06% 1,227,199 32,346 2.64%
---------- -------- ---------- --------
Total interest
bearing deposits $3,340,873 $ 30,354 0.91% $3,340,735 $ 48,496 1.45%
Short-term
borrowings 158,280 402 0.25% 140,066 552 0.39%
Trust preferred
debentures 75,422 4,140 5.49% 75,422 4,247 5.63%
Long-term debt 469,509 18,314 3.90% 601,039 23,629 3.93%
---------- -------- ---------- --------
Total interest
bearing
liabilities $4,044,084 $ 53,210 1.32% $4,157,262 $ 76,924 1.85%
-------- --------
Demand deposits 805,594 718,580
Other liabilities 79,182 75,868
Stockholders'
equity 525,474 477,299
---------- ----------
Total liabilities
and stockholders'
equity $5,454,334 $5,429,009
---------- ----------
Net interest
income (FTE) 208,086 202,744
-------- --------
Interest rate
spread 3.89% 3.73%
Net interest margin 4.15% 4.04%
Taxable equivalent
adjustment 5,558 6,275
-------- --------
Net interest income $202,528 $196,469
(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) 2010 2009
----------- -----------
Residential real estate mortgages $ 559,213 $ 622,898
Commercial 605,238 581,870
Commercial real estate mortgages 805,905 718,235
Real estate construction and development 50,164 76,721
Agricultural and agricultural real estate mortgages 112,738 122,466
Consumer 870,425 856,956
Home equity 575,678 603,585
Lease financing 30,645 62,667
----------- -----------
Total loans and leases $ 3,610,006 $ 3,645,398
=========== ===========
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.