NBT Bancorp Inc. Announces First-Quarter Results and Declares Quarterly Cash Dividend
NORWICH, N.Y., Apr 25, 2005 (BUSINESS WIRE) -- NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) today reported net income for the three months ended March 31, 2005, of $12.8 million, up $0.4 million from net income of $12.4 million reported for the same period in 2004. Net income per diluted share for the three months ended March 31, 2005, was $0.39, up $0.02 or 5% from the $0.37 per diluted share earned in the same period in 2004. Return on average assets and return on average equity were 1.23% and 15.74%, respectively, for the three months ended March 31, 2005, compared with 1.23% and 15.73%, respectively, for the same period in 2004.
The results for the three months ended March 31, 2005, were driven primarily by increases in net interest income of $1.7 million and noninterest income of $0.3 million as well as a $0.3 million decrease in the provision for loan and lease losses offset by an increase in noninterest expense of $1.7 million compared with the same period in 2004.
In commenting on the results, NBT Chairman and CEO Daryl R. Forsythe stated, "We are pleased to report another solid quarter for the Company. These results were driven by the success of our key initiatives to increase the volume of quality loans, grow deposits and expand our community banking presence into higher growth markets. NBT continues to place its focus on superior customer service while also seeking opportunities to enhance stockholder value."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans totaled $17.4 million at March 31, 2005, and represented 0.60% of total loans and leases, up from $16.2 million and 0.56% at December 31, 2004, and $13.7 million and 0.52% at March 31, 2004. Annualized net charge-offs to average loans and leases for the three months ended March 31, 2005, were 0.19%, down from the 0.22% annualized ratio for the three months ended March 31, 2004, and down from the year-to-date December 31, 2004, rate of 0.27%. The allowance for loan and lease losses as a percentage of total loans and leases was 1.57% at March 31, 2005, compared with 1.57% at December 31, 2004, and 1.64% at March 31, 2004. The ratio of the allowance for loan and lease losses to nonperforming loans was 261.28% at March 31, 2005, compared with 277.75% at December 31, 2004 and 315.25% at March 31, 2004. The Company anticipates selling approximately $5 million in nonperforming loans in the second quarter of 2005, which should lead to a further improvement in credit quality ratios. NBT President Martin Dietrich commented, "Our ability to improve credit quality reflects the strong process we have in place to resolve non-performing loans." For the three months ended March 31, 2005, the provision for loan and lease losses totaled $1.8 million, compared with $2.1 million provided in the same period in 2004. The decrease in the provision for loan and lease losses was driven primarily by a decrease in net charge-offs.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended March 31, 2005, increased 5% to $38.8 million from $37.1 million for the same period in 2004. The increase in net interest income was driven primarily by loan growth. Average loans and leases increased 9% during the three months ended March 31, 2005, compared with the same period in 2004, as the Company experienced strong growth from commercial and consumer loans during the second half of 2004. The Company's net interest margin decreased slightly for the three months ended March 31, 2005 to 4.09% compared with 4.10% for the same period in 2004. The Company's net interest margin of 4.09% improved during the three months ended March 31, 2005, compared with the net interest margin of 4.03% for the three months ended December 31, 2004. The improvement in net interest margin from the December 31, 2004, quarter resulted primarily from earning assets repricing up faster than interest-bearing liabilities, principally from lagging core deposit pricing increases when compared with recent increases in the Federal Funds Rate.
Noninterest Income
Noninterest income for the three months ended March 31, 2005, totaled $10.7 million, up $0.3 million from the $10.4 million reported in the same period of 2004. Retirement plan administration fees for the three months ended March 31, 2005, totaled $0.9 million due to the acquisition of EPIC Advisors, Inc. in January 2005. Broker/dealer and insurance revenue for the three months ended March 31, 2005, decreased $0.4 million, primarily from the sale of the Company's broker/dealer subsidiary M. Griffith Inc. in March 2005.
Noninterest Expense
Total noninterest expense for the three months ended March 31, 2005, increased $1.7 million compared with the same period for 2004. Salaries and employee benefits for the three months ended March 31, 2005, increased $1.1 million or 8% over the same period in 2004, primarily from increases in salaries (from merit increases, market expansion and the EPIC Advisors, Inc. acquisition) and retirement expense. Occupancy expense for the three months ended March 31, 2005, increased $0.2 million over the same period in 2004, mainly from market expansion in the Albany and Binghamton markets. Equipment expense for the three months ended March 31, 2005, increased $0.2 million over the same period in 2004, due mainly to ATM upgrades.
Balance Sheet
Total assets were $4.3 billion at March 31, 2005, up $238.7 million from the $4.0 billion at March 31, 2004. Loans and leases were $2.9 billion at March 31, 2005, up 10% from the $2.6 billion at March 31, 2004. Loan growth was driven primarily by commercial and consumer loans, which experienced strong growth during the second half of 2004. Total deposits increased $154.3 million or 5%, totaling $3.2 billion at March 31, 2005, compared with $3.0 billion at March 31, 2004. Stockholders' equity was $319.2 million, representing a Tier 1 leverage ratio of 6.89%, at March 31, 2005, compared with $322.3 million or a Tier 1 leverage ratio of 6.96%, at March 31, 2004.
Stock Repurchase Program
On January 24, 2005, the NBT Board of Directors approved a new repurchase program whereby NBT is authorized to repurchase up to an additional 1,500,000 shares (approximately 5%) of its outstanding common stock from time to time as market conditions warrant in open market and privately negotiated transactions. At that time, there were 719,800 shares remaining under a previous authorization that was superseded by the new repurchase program. Under the authorized programs for the period, the Company purchased 514,683 shares of its common stock during the three months ended March 31, 2005, for a total of $11.9 million at an average price of $23.11 per share.
Dividend Declared
The NBT Board of Directors declared a second quarter 2005 cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on June 15, 2005, to shareholders of record as of June 1, 2005.
Corporate Overview
NBT is a financial services holding company headquartered in Norwich, NY, with total assets of $4.3 billion at March 31, 2005. The Company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions and through a financial services company. NBT Bank, N.A. has 115 locations, including 74 NBT Bank offices in upstate New York and 41 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc. is a full-service 401(k) plan recordkeeping firm. More information about NBT and its divisions can be found on the Internet at www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com and www.epic1st.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.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2005 2004 Change Change
---- ---- ------ -------
(dollars in thousands,
except share and per
share data)
Three Months Ended March 31,
Net Income $12,789 $12,371 $418 3%
Diluted Earnings Per Share $0.39 $0.37 $0.02 5%
Weighted Average Diluted
Common Shares Outstanding 32,977,381 33,173,937 (196,556) -1%
Return on Average Assets 1.23% 1.23% 0.00% 0%
Return on Average Equity 15.74% 15.73% 0.01% 0%
Net Interest Margin 4.09% 4.10% -0.01% 0%
----------------------------------------------------------------------
Asset Quality March December March
31, 2005 31, 2004 31, 2004
-------- -------- --------
Nonaccrual Loans $16,612 $14,991 $13,258
90 Days Past Due and Still
Accruing $760 $1,186 $478
Total Nonperforming Loans $17,372 $16,177 $13,736
Other Real Estate Owned (OREO) $438 $428 $757
Total Nonperforming Loans and
OREO $17,810 $16,605 $14,493
Nonperforming Securities $0 $0 $215
Total Nonperforming Assets $17,810 $16,605 $14,708
Allowance for Loan and Lease
Losses $45,389 $44,932 $43,303
Year-to-Date (YTD) Net Charge-
Offs $1,339 $7,334 $1,472
Allowance to Loans and Leases 1.57% 1.57% 1.64%
Total Nonperforming Loans to
Loans and Leases 0.60% 0.56% 0.52%
Total Nonperforming Assets to
Assets 0.42% 0.39% 0.37%
Allowance to Nonperforming Loans 261.28% 277.75% 315.25%
Annualized Net Charge-Offs to
YTD Average Loans and Leases 0.19% 0.27% 0.22%
----------------------------------------------------------------------
Capital
Equity to Assets 7.50% 7.89% 8.02%
Book Value Per Share $9.85 $10.11 $9.80
Tangible Book Value Per Share $8.25 $8.66 $8.29
Tier 1 Leverage Ratio 6.89% 7.13% 6.96%
Tier 1 Capital Ratio 9.41% 9.78% 10.12%
Total Risk-Based Capital Ratio 10.67% 11.04% 11.37%
----------------------------------------------------------------------
----------------------------------------------------------------------
Quarterly Common Stock Price 2005 2004 2003
Quarter End High Low High Low High Low
---- --- ---- --- ---- ---
March 31 $25.66 $21.48 $23.00 $21.21 $18.60 $16.75
June 30 23.18 19.92 19.94 17.37
September 30 24.34 21.02 21.76 19.24
December 31 26.84 21.94 22.78 19.50
----------------------------------------------------------------------
NBT Bancorp Inc.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2005 2004 Change Change
---- ---- ------ ------
(dollars in thousands,
except share and per
share data)
Balance Sheet as of March 31,
Loans $2,898,187 $2,646,674 $251,513 10%
Earning Assets $3,984,545 $3,729,845 $254,700 7%
Total Assets $4,255,439 $4,016,733 $238,706 6%
Deposits $3,168,927 $3,014,616 $154,311 5%
Stockholders' Equity $319,239 $322,280 ($3,041) -1%
----------------------------------------------------------------------
Average Balances
Quarter Ended March 31,
Loans $2,876,853 $2,646,114 $230,739 9%
Securities AFS (excluding
unrealized gains or losses) $952,848 $964,648 ($11,800) -1%
Securities HTM $84,783 $95,954 ($11,171) -12%
Regulatory Equity Investment $36,535 $33,994 $2,541 7%
Short-Term Interest Bearing
Accounts $6,578 $8,241 ($1,663) -20%
Total Earning Assets $3,957,597 $3,748,951 $208,646 6%
Total Assets $4,237,627 $4,032,283 $205,344 5%
Interest Bearing Deposits $2,604,441 $2,521,446 $82,995 3%
Non-Interest Bearing Deposits $505,457 $468,722 $36,735 8%
Short-Term Borrowings $329,726 $289,616 $40,110 14%
Long-Term Borrowings $413,233 $386,708 $26,525 7%
Total Interest Bearing
Liabilities $3,347,400 $3,197,770 $149,630 5%
Stockholders' Equity $329,947 $316,064 $13,883 4%
----------------------------------------------------------------------
NBT Bancorp Inc. and Subsidiaries March 31, December 31, March 31,
Consolidated Balance Sheets
(unaudited) 2005 2004 2004
----------------------------------------------------------------------
(in thousands)
ASSETS
Cash and due from banks $106,520 $98,437 $93,090
Short term interest bearing accounts 5,783 8,286 9,619
Securities available for sale, at
fair value 950,555 952,542 977,950
Securities held to maturity (fair
value of $87,407, $82,712, and
$92,672, at March 31, 2005,
December 31, 2004 and March 31,
2004, respectively) 87,063 81,782 91,205
Federal Reserve and Federal Home
Loan Bank stock 36,942 36,842 30,648
Loans and leases 2,898,187 2,869,921 2,646,674
Less allowance for loan and lease
losses 45,389 44,932 43,303
----------------------------------------------------------------------
Net loans and leases 2,852,798 2,824,989 2,603,371
Premises and equipment, net 63,806 63,743 62,426
Goodwill 47,544 45,570 47,521
Intangible assets, net 4,234 2,013 2,260
Bank owned life insurance 32,634 32,302 31,200
Other assets 67,560 65,798 67,443
----------------------------------------------------------------------
TOTAL ASSETS $4,255,439 $4,212,304 $4,016,733
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $509,077 $520,218 $464,867
Savings, NOW, and money market 1,467,265 1,435,561 1,482,755
Time 1,192,585 1,118,059 1,066,994
----------------------------------------------------------------------
Total deposits 3,168,927 3,073,838 3,014,616
Short-term borrowings 307,514 338,823 238,093
Long-term debt 394,500 394,523 369,679
Trust preferred debentures 18,720 18,720 18,720
Other liabilities 46,539 54,167 53,345
----------------------------------------------------------------------
Total liabilities 3,936,200 3,880,071 3,694,453
Total stockholders' equity 319,239 332,233 322,280
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $4,255,439 $4,212,304 $4,016,733
----------------------------------------------------------------------
Three months ended
NBT Bancorp Inc. and Subsidiaries March 31,
Consolidated Statements of Income (unaudited) 2005 2004
----------------------------------------------------------------------
(in thousands, except per share data)
Interest, fee and dividend income:
Loans and leases $43,944 $39,894
Securities available for sale 10,247 10,769
Securities held to maturity 803 797
Other 467 267
----------------------------------------------------------------------
Total interest, fee and dividend income 55,461 51,727
----------------------------------------------------------------------
Interest expense:
Deposits 10,720 10,045
Short-term borrowings 1,861 793
Long-term debt 3,808 3,615
Trust preferred debentures 258 180
----------------------------------------------------------------------
Total interest expense 16,647 14,633
----------------------------------------------------------------------
Net interest income 38,814 37,094
Provision for loan and lease losses 1,796 2,124
----------------------------------------------------------------------
Net interest income after provision for loan and
lease losses 37,018 34,970
----------------------------------------------------------------------
Noninterest income:
Trust 1,252 1,107
Service charges on deposit accounts 3,929 4,037
ATM and debit card fees 1,400 1,258
Broker/dealer and insurance revenue 1,352 1,731
Net securities gains (4) 9
Bank owned life insurance income 333 385
Retirement plan administration fees 863 -
Other 1,586 1,916
----------------------------------------------------------------------
Total noninterest income 10,711 10,443
----------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 15,223 14,113
Office supplies and postage 1,150 1,031
Occupancy 2,788 2,598
Equipment 2,096 1,853
Professional fees and outside services 1,675 1,632
Data processing and communications 2,658 2,692
Amortization of intangible assets 118 71
Loan collection and other real estate owned 401 372
Other operating 2,772 2,840
----------------------------------------------------------------------
Total noninterest expense 28,881 27,202
----------------------------------------------------------------------
Income before income taxes 18,848 18,211
Income taxes 6,059 5,840
----------------------------------------------------------------------
Net income $12,789 $12,371
----------------------------------------------------------------------
Earnings Per Share:
Basic $0.39 $0.38
Diluted $0.39 $0.37
----------------------------------------------------------------------
NBT Bancorp Inc. and 1Q 4Q 3Q 2Q 1Q
Subsidiaries
Quarterly Consolidated
Statements of Income
(unaudited) 2005 2004 2004 2004 2004
----------------------------------------------------------------------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans $43,944 $42,983 $41,283 $39,635 $39,894
Securities available for sale 10,247 10,398 10,784 10,313 10,769
Securities held to maturity 803 761 731 755 797
Other 467 279 295 235 267
----------------------------------------------------------------------
Total interest, fee and
dividend income 55,461 54,421 53,093 50,938 51,727
----------------------------------------------------------------------
Interest expense:
Deposits 10,720 10,299 9,743 9,674 10,045
Short-term borrowings 1,861 1,307 1,192 794 793
Long-term debt 3,808 3,919 3,861 3,627 3,615
Trust preferred debentures 258 235 245 163 180
----------------------------------------------------------------------
Total interest expense 16,647 15,760 15,041 14,258 14,633
----------------------------------------------------------------------
Net interest income 38,814 38,661 38,052 36,680 37,094
Provision for loan and lease
losses 1,796 2,750 2,313 2,428 2,124
----------------------------------------------------------------------
Net interest income after
provision for loan and lease
losses 37,018 35,911 35,739 34,252 34,970
----------------------------------------------------------------------
Noninterest income:
Trust 1,252 1,174 1,182 1,142 1,107
Service charges on deposit
accounts 3,929 4,184 4,159 4,090 4,037
ATM and debit card fees 1,400 1,402 1,474 1,396 1,258
Broker/dealer and insurance
fees 1,352 1,572 1,696 1,783 1,731
Net securities gains (4) 160 18 29 9
Bank owned life insurance
income 333 345 348 409 385
Retirement plan administration
fees 863 - - - -
Other 1,586 1,503 1,240 1,140 1,916
----------------------------------------------------------------------
Total noninterest income 10,711 10,340 10,117 9,989 10,443
----------------------------------------------------------------------
Noninterest expense:
Salaries and employee benefits 15,223 14,063 13,345 12,542 14,113
Office supplies and postage 1,150 1,118 1,167 1,143 1,031
Occupancy 2,788 2,416 2,445 2,446 2,598
Equipment 2,096 1,998 1,941 1,781 1,853
Professional fees and outside
services 1,675 1,583 1,536 1,424 1,632
Data processing and
communications 2,658 2,740 2,688 2,852 2,692
Amortization of intangible
assets 118 71 71 71 71
Loan collection and other real
estate owned 401 431 339 99 372
Goodwill impairment - 1,950 - - -
Other operating 2,772 3,037 3,773 3,505 2,840
----------------------------------------------------------------------
Total noninterest expense 28,881 29,407 27,305 25,863 27,202
----------------------------------------------------------------------
Income before income taxes 18,848 16,844 18,551 18,378 18,211
Income taxes 6,059 4,353 5,934 5,810 5,840
----------------------------------------------------------------------
Net income $12,789 $12,491 $12,617 $12,568 $12,371
----------------------------------------------------------------------
Earnings per share:
Basic $0.39 $0.38 $0.38 $0.38 $0.38
Diluted $0.39 $0.38 $0.38 $0.38 $0.37
----------------------------------------------------------------------
SOURCE: NBT Bancorp Inc.
NBT Bancorp Inc.
Daryl R. Forsythe/Michael J. Chewens, 607-337-6416