NBT Bancorp Inc. Announces Quarterly Earnings of $14.2 Million; Declares Cash Dividend
NORWICH, N.Y.--(BUSINESS WIRE)--July 24, 2006--NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the quarter ended June 30, 2006 was $14.2 million, up 8% or $1.1 million from net income of $13.1 million reported for the same period in 2005. Net income per diluted share for the three months ended June 30, 2006 was $0.41 per share, as compared to $0.40 per share for the same period in 2005. Return on average assets and return on average equity were 1.15% and 14.71%, respectively, for the quarter ended June 30, 2006, compared with 1.22% and 16.21%, respectively, for the same period in 2005. The increase in net income for the quarter ended June 30, 2006, was primarily the result of a $2.0 million increase in net interest income and a $1.5 million increase in noninterest income. In addition, the Company experienced a decrease in the provision for loan and lease losses of $0.6 million for the quarter ended June 30, 2006 compared to the same period in 2005. The aforementioned increases in income and reduction of the provision for loan and lease losses were partially offset by a $3.0 million increase in noninterest expense. Results for the three months ended June 30, 2006, include $0.4 million in pre-tax salaries and benefits expense related to stock options resulting from the adoption on January 1, 2006 of Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R), "Share-Based Payment", which requires companies to measure and recognize compensation expense for all share-based payments. The adoption of FAS 123R lowered diluted earnings per share by $0.01 for the three months ended June 30, 2006.
Net income for the six months ended June 30, 2006, was $27.8 million, up 7% or $1.9 million from net income of $25.9 million reported for the same period in 2005. Net income per diluted share for the six month period ended June 30, 2006 was $0.81 per share, as compared to $0.79 per share for the same period in 2005. Return on average assets and return on average equity were 1.17% and 14.93%, respectively, for the six months ended June 30, 2006, compared with 1.23% and 15.99%, respectively, for the same period in 2005. The increase in net income for the six months ended June 30, 2006 was primarily the result of a $3.4 million increase in net interest income and a $2.0 million increase in noninterest income. In addition, the Company experienced a decrease in the provision for loan and lease losses of $0.7 million for the six months ended June 30, 2006 compared to the same period in 2005. The aforementioned increases in income were partially offset by a $4.6 million increase in noninterest expense. Results for the six months ended June 30, 2006, include $1.1 million in pre-tax salaries and benefits expense related to stock options resulting from the adoption of FAS 123R on January 1, 2006. This lowered diluted earnings per share by $0.03 for the six months ended June 30, 2006.
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, "These are challenging times for the entire financial services industry. I am pleased by the efforts of all of our people and our ability to continue our earnings growth in this higher interest rate environment is a testament to their efforts. Despite the continuing flat yield curve environment and decline in net interest margin, we are pleased to report another solid quarter for the Company, due in large part to our solid loan and deposit growth, as well as our noninterest income growth."
In late June, portions of NBT's market areas in New York and Pennsylvania were affected by record flooding. Dietrich said, "I am very proud of the efforts of our employees. Many went above and beyond the call of duty in safely helping us restore our banking functions in the areas most heavily hit. These efforts, in conjunction with our disaster recovery plan, allowed us to process our work with minimal interruption to our branch and ATM network. At this time, we do not believe that the flood's financial impact on our business is significant. Most of the damage to our facilities is covered by insurance. We extend our sympathies to those in our communities who suffered losses due to this devastating flood."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at June 30, 2006 were $12.9 million or 0.38% of total loans and leases compared with $13.5 million or 0.45% of total loans and leases at June 30, 2005 and $14.3 million or 0.47% of total loans and leases at December 31, 2005. Annualized net charge-offs to average loans and leases for the six months ended June 30, 2006, were 0.20%, compared with the 0.18% annualized ratio for the six months ended June 30, 2005, and the ratio for the year ended December 31, 2005 of 0.23%. The Company's allowance for loan and lease losses was 1.50% of loans and leases at June 30, 2006 compared with 1.55% at June 30, 2005, and 1.57% at December 31, 2005. The ratio of the allowance for loan and lease losses to nonperforming loans was 390.04% at June 30, 2006 compared with 344.01% at June 30, 2005, and 331.92% at December 31, 2005.
For the quarter and six months ended June 30, 2006, the provision for loan and lease losses totaled $1.7 million and $3.4 million, respectively, compared with the $2.3 million and $4.1 million for the same periods in 2005. The decrease in the provision for loan and lease losses for the quarter and six months ended June 30, 2006, when compared with the same periods in 2005, was due primarily to improved credit quality.
Net Interest Income
Net interest income was up 5.2% to $41.4 million for the quarter ended June 30, 2006, compared to $39.3 million for the same period a year ago. Despite a decrease in the Company's net interest margin, which was 3.73% for the quarter ended June 30, 2006, down from 4.02% for the same period in 2005, the increase in net interest income was attributable to 14% growth in average earning assets. The growth in average earning assets was due primarily to the acquisition of CNB. Despite a decrease in the Company's net interest margin, which was 3.80% for the six months ended June 30, 2006, down from 4.06% for the same period in 2005, net interest income for the six months ended June 30, 2006 increased 4.3%, to $81.5 million from $78.1 million in the same period for 2005. The increase in net interest income was attributable to a 12% growth in average earning assets due primarily to the acquisition of CNB. The decline in the net interest margin is due largely to the effect from our borrowings, money market accounts and time deposits repricing in the 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 rates for earning assets with terms 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 yield curve.
Noninterest Income
Noninterest income for the quarter ended June 30, 2006 was $12.6 million, up $1.5 million or 13.6% from $11.1 million for the same period in 2005. Fees from service charges on deposit accounts and ATM and debit cards collectively increased $0.4 million from solid growth in demand deposit accounts and debit card base. Retirement plan administration fees for the three months ended June 30, 2006, increased $0.3 million compared with the same period in 2005 as a result of our growing client base. Trust administration income increased $0.2 million or 16.6% for the quarter ended June 30, 2006 compared to the same period in 2005. This increase stems 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. Broker/dealer and insurance revenue for the three months ended June 30, 2006 increased $0.2 million in large part due to the addition of Hathaway Insurance Agency as part of the acquisition of CNB, as well as the planned expansion of the financial services business. Other noninterest income increased $0.3 million compared with the same period in 2005, primarily due to increases in retail and commercial banking fees.
Noninterest income for the six months ended June 30, 2006 was $23.8 million, up $2.0 million or 9.3% from $21.8 million for the same period in 2005. Included in noninterest income for the six months ended June 30, 2006 were $0.9 million in net losses from investment securities sales. Excluding the effect of these transactions for the six months ended June 30, 2006, noninterest income increased $3.0 million or 13.7% compared with the same period in 2005. For the six months ended June 30, 2006, fees from service charges on deposit accounts and ATM and debit cards collectively increased $1.0 million from solid growth in demand deposit accounts, which has led to an increase in the Company's debit card base. Retirement plan administration fees for the six months ended June 30, 2006, increased $0.6 million compared with the same period in 2005 due to an increase in our client base. Trust administration income increased $0.3 million or 12.5% for the six months ended June 30, 2006 compared to the same period in 2005. This increase stems 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. Other noninterest income increased $1.2 million for the six months ended June 30, 2006, compared with the same period in 2005, due to increases in retail and commercial banking fees. For the six months ended June 30, 2006, broker/dealer and insurance revenue decreased by $0.2 million as compared with the same period in 2005. While the Company experienced organic growth and acquired Hathaway Insurance Agency during the period in 2006, these increases over 2005 were offset by the sale of M. Griffith, Inc. in the first quarter of 2005.
Noninterest Expense and Income Tax Expense
Noninterest expense for the quarter ended June 30, 2006 was $31.7 million, up from $28.7 million for the same period in 2005. Salaries and employee benefits for the quarter ended June 30, 2006, increased $1.1 million over the same period in 2005, mainly from higher salaries from merit increases, the acquisition of CNB, and stock-based compensation costs associated with the adoption of FAS 123R. Office expenses such as supplies and postage, occupancy, equipment, and data processing and communications charges increased by $0.8 million for the quarter ended June 30, 2006 as compared with the same period in 2005. This 9.7% increase resulted primarily from the overall growth of the Company as well as the acquisition of CNB Bancorp on February 10, 2006. Professional fees and services increased $0.4 million for the quarter ended June 30, 2006 as 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. In addition, legal fees incurred during the quarter ended June 30, 2006 increased over the same period in 2005 as the Company was reimbursed for legal fees during the second quarter of 2005 associated with prior litigation. Amortization expense increased $0.3 million for the quarter ended June 30, 2006 over the same period in 2005. This increase was due primarily to the acquisition of CNB. Other operating expense for the quarter ended June 30, 2006 increased $0.3 million compared with the same period in 2005, primarily due to $0.2 million in flood related losses. Income tax expense for the quarter ended June 30, 2006 was $6.4 million, up from $6.2 million for the same period in 2005. The effective rate for the quarter ended June 30, 2006 was 31.0%, down from 32.2% for the same period in 2005. The decline in the effective tax rate during the second quarter 2006 versus the same period in 2005 is primarily a result of an increase in interest income from tax exempt sources.
Noninterest expense for the six months ended June 30, 2006 was $62.2 million, up from $57.6 million for the same period in 2005. Salaries and employee benefits for the six months ended June 30, 2006, increased $1.4 million over the same period in 2005, mainly from higher salaries from merit increases, the acquisition of CNB, and stock-based compensation costs associated with the adoption of FAS 123R. Office expenses such as supplies and postage, occupancy, equipment, and data processing and communications charges increased by $1.1 for the six months ended June 30, 2006 as compared with the same period in 2005. This 6.7% increase resulted primarily from the overall growth of the Company as well as the acquisition of CNB Bancorp on February 10, 2006. Professional fees and services increased $0.6 million for the six months ended June 30, 2006 as 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. In addition, legal fees incurred during the period increased over the same period in 2005 as the Company was reimbursed for legal fees during the second quarter of 2005 associated with prior litigation. Amortization expense increased $0.5 million for the six months ended June 30, 2006 over the same period in 2005. This increase was due primarily to the acquisition of CNB. Other operating expense for the six months ended June 30, 2006 increased $1.1 million compared with the same period in 2005, in large part due to merger expenses incurred as a result of the acquisition of CNB as well as flood related losses. Income tax expense for the six months ended June 30, 2006 was $11.9 million, down from $12.3 million for the same period in 2005. The effective rate for the six months ended June 30, 2006 was 30.0%, down from 32.2% for the same period in 2005. The decrease in tax expense and the effective tax rate for the six months ended June 30, 2006 resulted primarily from a settlement for a tax refund claim of $0.5 million during the first quarter and an increase in interest income from tax exempt sources.
Balance Sheet
Total assets were $5.0 billion at June 30, 2006 up $0.6 billion from $4.4 billion at June 30, 2005. Loans and leases increased $0.3 billion or 12% from $3.0 billion at June 30, 2005 to $3.3 billion at June 30, 2006 due in large part to the acquisition of CNB. In addition, loan growth was fueled by solid production from consumer and commercial loan products. Total deposits were $3.7 billion at June 30, 2006 up 18% from the same period at June 30, 2005, also due in large part to the acquisition of CNB. Stockholders' equity was $377.6 million representing total equity to total assets of 7.56% at June 30, 2006 compared with $330.7 million or a total equity to total asset ratio of 7.55% at June 30, 2005.
CNB Acquisition
On February 10, 2006, the Company completed its previously announced acquisition of CNB. With the completion of the acquisition, City National Bank and Trust Company merged into NBT Bank, N.A., adding nine full-service community banking offices to the NBT Bank division branch network. On an aggregate basis, CNB stockholders received approximately $39 million in cash and 2,059,000 shares of NBT common stock. The aggregate transaction value was approximately $89.0 million.
Stock Repurchase Program
Under previously mentioned stock repurchase plans, the Company purchased 560,100 shares of its common stock during the quarter ended June 30, 2006, for a total of $12.4 million at an average price of $22.22 per share. For the six month period ended June 30, 2006, the Company purchased 738,504 shares of its common stock for a total of $16.5 million at an average price of $22.34 per share. At June 30, 2006, there were 764,647 shares available for repurchase under previously announced plans.
Dividend Declared
The NBT Board of Directors declared a third-quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on September 15, 2006 to shareholders of record as of September 1, 2006.
Corporate Overview
NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.0 billion at June 30, 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 121 locations, including 83 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; (7) NBT may fail to realize projected cost savings, revenue enhancements and the accretive effect of the CNB acquisition on our earnings; and (8) 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
2006 2005 Change Change
---- ---- ------ ------
(dollars in thousands,
except per share data)
Three Months Ended June
30,
Net Income $14,169 $13,128 $1,041 8%
Diluted Earnings Per
Share $0.41 $0.40 $0.01 2%
Weighted Average Diluted
Common Shares
Outstanding 34,471,723 32,583,600 1,888,123 6%
Return on Average Assets 1.15% 1.22% -0.07% -6%
Return on Average Equity 14.71% 16.21% -1.50% -9%
Net Interest Margin 3.73% 4.02% -0.29% -7%
----------------------------------------------------------------------
Six Months Ended June
30,
Net Income $27,757 $25,917 $1,840 7%
Diluted Earnings Per
Share $0.81 $0.79 $0.02 3%
Weighted Average Diluted
Common Shares
Outstanding 34,111,076 32,779,403 1,331,673 4%
Return on Average Assets 1.17% 1.23% -0.06% -5%
Return on Average Equity 14.93% 15.99% -1.06% -7%
Net Interest Margin 3.80% 4.06% -0.26% -6%
----------------------------------------------------------------------
Asset Quality June 30, December 31, June 30,
2006 2005 2005
---- ---- ----
Nonaccrual Loans $12,277 $13,419 $13,041
90 Days Past Due and
Still Accruing $580 $878 $450
Total Nonperforming
Loans $12,857 $14,297 $13,491
Other Real Estate Owned
(OREO) $423 $265 $395
Total Nonperforming
Assets $13,280 $14,562 $13,886
Allowance for Loan and
Lease Losses $50,148 $47,455 $46,411
Year-to-Date (YTD) Net
Charge-Offs $3,148 $6,941 $2,637
Allowance to Loans and
Leases 1.50% 1.57% 1.55%
Total Nonperforming
Loans to Loans and
Leases 0.38% 0.47% 0.45%
Total Nonperforming
Assets to Assets 0.27% 0.33% 0.32%
Allowance to
Nonperforming Loans 390.04% 331.92% 344.01%
Net Charge-Offs to YTD
Average Loans and
Leases 0.20% 0.23% 0.18%
----------------------------------------------------------------------
Capital
Equity to Assets 7.56% 7.54% 7.55%
Book Value Per Share $11.15 $10.34 $10.22
Tangible Book Value Per
Share $7.72 $8.75 $8.62
Tier 1 Leverage Ratio 7.27% 7.16% 6.91%
Tier 1 Capital Ratio 9.90% 9.80% 9.23%
Total Risk-Based
Capital Ratio 11.15% 11.05% 10.48%
----------------------------------------------------------------------
---------------------------------------------------------------
Quarterly Common Stock
Price 2006 2005 2004
Quarter End
High Low High Low High Low
---- --- ---- --- ---- ---
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 25.50 22.79 24.34 21.02
December 31 23.79 20.75 26.84 21.94
---------------------------------------------------------------
NBT Bancorp Inc.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
Net Percent
2006 2005 Change Change
---- ---- ------ ------
(dollars in thousands,
except per share data)
Balance Sheet as of June 30,
Loans $3,347,876 $2,995,964 $351,912 12%
Earning Assets $4,636,111 $4,087,964 $548,147 13%
Total Assets $4,995,912 $4,381,364 $614,548 14%
Deposits $3,747,901 $3,178,059 $569,842 18%
Stockholders' Equity $377,606 $330,749 $46,857 14%
----------------------------------------------------------------------
Average Balances
Quarter Ended June 30,
Loans $3,302,136 $2,943,631 $358,505 12%
Securities Available For Sale
(excluding unrealized gains or
losses) $1,132,330 $955,166 $177,164 19%
Securities Held To Maturity $101,481 $88,401 $13,080 15%
Regulatory Equity Investment $40,166 $36,617 $3,549 10%
Short-Term Interest Bearing
Accounts $7,346 $6,411 $935 15%
Total Earning Assets $4,583,459 $4,030,226 $553,233 14%
Total Assets $4,937,007 $4,307,004 $630,003 15%
Interest Bearing Deposits $3,039,915 $2,657,197 $382,718 14%
Non-Interest Bearing Deposits $614,049 $521,348 $92,701 18%
Short-Term Borrowings $422,007 $320,151 $101,856 32%
Long-Term Borrowings $424,176 $430,452 ($6,276) -1%
Total Interest Bearing
Liabilities $3,886,097 $3,407,800 $478,297 14%
Stockholders' Equity $386,183 $324,801 $61,382 19%
----------------------------------------------------------------------
Average Balances
Six Months Ended June 30,
Loans $3,225,053 $2,910,426 $314,627 11%
Securities Available For Sale
(excluding unrealized gains or
losses) $1,093,566 $954,013 $139,553 15%
Securities Held To Maturity $99,425 $86,602 $12,823 15%
Regulatory Equity Investment $40,357 $36,576 $3,781 10%
Short-Term Interest Bearing
Accounts $7,543 $6,569 $974 15%
Total Earning Assets $4,465,944 $3,994,186 $471,758 12%
Total Assets $4,802,333 $4,272,507 $529,826 12%
Interest Bearing Deposits $2,925,441 $2,630,965 $294,476 11%
Non-Interest Bearing Deposits $602,632 $513,447 $89,185 17%
Short-Term Borrowings $423,639 $324,912 $98,727 30%
Long-Term Borrowings $423,142 $421,890 $1,252 0%
Total Interest Bearing
Liabilities $3,772,222 $3,377,767 $394,455 12%
Stockholders' Equity $375,658 $327,360 $48,298 15%
----------------------------------------------------------------------
NBT Bancorp Inc. and Subsidiaries June 30, December 31, June 30,
Consolidated Balance Sheets
(unaudited) 2006 2005 2005
----------------------------------------------------------------------
(in thousands)
ASSETS
Cash and due from banks $136,005 $134,501 $118,358
Short term interest bearing accounts 9,575 7,987 6,078
Securities available for sale, at
fair value 1,100,416 954,474 961,944
Securities held to maturity (fair
value of $109,562, $93,701 and
$89,465 at June 30, 2006, December
31, 2005 and June 30, 2005,
respectively) 110,331 93,709 88,771
Federal Reserve and Federal Home Loan
Bank stock 40,338 40,259 39,442
Loans and leases 3,347,876 3,022,657 2,995,964
Less allowance for loan and lease
losses 50,148 47,455 46,411
----------------------------------------------------------------------
Net loans and leases 3,297,728 2,975,202 2,949,553
Premises and equipment, net 66,948 63,693 64,133
Goodwill 102,803 47,544 47,544
Intangible assets, net 13,338 3,808 4,092
Bank owned life insurance 40,926 33,648 32,968
Other assets 77,504 71,948 68,481
----------------------------------------------------------------------
TOTAL ASSETS $4,995,912 $4,426,773 $4,381,364
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $642,901 $593,422 $569,046
Savings, NOW, and money market 1,567,171 1,325,166 1,386,720
Time 1,537,829 1,241,608 1,222,293
----------------------------------------------------------------------
Total deposits 3,747,901 3,160,196 3,178,059
Short-term borrowings 320,637 444,977 384,171
Long-term debt 421,736 414,330 419,377
Trust preferred debentures 75,422 23,875 18,720
Other liabilities 52,610 49,452 50,288
----------------------------------------------------------------------
Total liabilities 4,618,306 4,092,830 4,050,615
Total stockholders' equity 377,606 333,943 330,749
----------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $4,995,912 $4,426,773 $4,381,364
----------------------------------------------------------------------
Three months ended Six months ended
NBT Bancorp Inc. and June 30, June 30,
Subsidiaries
Consolidated Statements of
Income (unaudited) 2006 2005 2006 2005
----------------------------------------------------------------------
(in thousands, except per share
data)
Interest, fee and dividend
income:
Loans and leases $57,085 $46,260 $109,918 $90,204
Securities available for sale 13,084 10,226 24,961 20,473
Securities held to maturity 1,043 831 2,028 1,634
Other 619 549 1,230 1,016
--------------------------------------------------- ------------------
Total interest, fee and
dividend income 71,831 57,866 138,137 113,327
--------------------------------------------------- ------------------
Interest expense:
Deposits 20,869 12,018 38,094 22,738
Short-term borrowings 4,111 2,207 8,048 4,068
Long-term debt 4,227 4,032 8,369 7,840
Trust preferred debentures 1,255 285 2,138 543
--------------------------------------------------- ------------------
Total interest expense 30,462 18,542 56,649 35,189
--------------------------------------------------- ------------------
Net interest income 41,369 39,324 81,488 78,138
Provision for loan and lease
losses 1,703 2,320 3,431 4,116
--------------------------------------------------- ------------------
Net interest income after
provision for loan and lease
losses 39,666 37,004 78,057 74,022
--------------------------------------------------- ------------------
Noninterest income:
Trust 1,459 1,251 2,817 2,503
Service charges on deposit
accounts 4,493 4,311 8,712 8,240
ATM and debit card fees 1,789 1,544 3,434 2,944
Broker/dealer and insurance
revenue 967 736 1,875 2,088
Net securities gains (losses) 22 51 (912) 47
Bank owned life insurance income 392 333 773 666
Retirement plan administration
fees 1,431 1,156 2,662 2,019
Other 2,003 1,673 4,419 3,259
--------------------------------------------------- ------------------
Total noninterest income 12,556 11,055 23,780 21,766
--------------------------------------------------- ------------------
Noninterest expense:
Salaries and employee benefits 16,335 15,253 32,083 30,705
Office supplies and postage 1,456 1,121 2,637 2,271
Occupancy 2,747 2,550 5,735 5,338
Equipment 2,067 1,931 4,223 4,027
Professional fees and outside
services 1,800 1,381 3,632 3,056
Data processing and
communications 2,649 2,530 5,351 5,188
Amortization of intangible
assets 466 142 789 260
Loan collection and other real
estate owned 289 208 500 609
Other operating 3,885 3,580 7,216 6,123
--------------------------------------------------- ------------------
Total noninterest expense 31,694 28,696 62,166 57,577
--------------------------------------------------- ------------------
Income before income taxes 20,528 19,363 39,671 38,211
Income taxes 6,359 6,235 11,914 12,294
--------------------------------------------------- ------------------
Net income $14,169 $13,128 $27,757 $25,917
--------------------------------------------------- ------------------
Earnings Per Share:
Basic $0.41 $0.41 $0.82 $0.80
Diluted $0.41 $0.40 $0.81 $0.79
----------------------------------------------------------------------
NBT Bancorp Inc. and 2Q 1Q 4Q 3Q 2Q
Subsidiaries
Quarterly Consolidated
Statements of Income
(unaudited) 2006 2006 2005 2005 2005
----------------------------------------------------------------------
(in thousands, except per
share data)
Interest, fee and dividend
income:
Loans $57,085 $52,833 $50,726 $48,784 $46,260
Securities available for sale 13,084 11,877 10,544 10,103 10,226
Securities held to maturity 1,043 985 913 860 831
Other 619 611 575 535 549
----------------------------------------------------------------------
Total interest, fee and
dividend income 71,831 66,306 62,758 60,282 57,866
----------------------------------------------------------------------
Interest expense:
Deposits 20,869 17,225 14,352 12,842 12,018
Short-term borrowings 4,111 3,937 3,911 3,005 2,207
Long-term debt 4,227 4,142 4,098 4,176 4,032
Trust preferred debentures 1,255 883 375 308 285
----------------------------------------------------------------------
Total interest expense 30,462 26,187 22,736 20,331 18,542
----------------------------------------------------------------------
Net interest income 41,369 40,119 40,022 39,951 39,324
Provision for loan and lease
losses 1,703 1,728 2,596 2,752 2,320
----------------------------------------------------------------------
Net interest income after
provision for loan and lease
losses 39,666 38,391 37,426 37,199 37,004
----------------------------------------------------------------------
Noninterest income:
Trust 1,459 1,358 1,234 1,292 1,251
Service charges on deposit
accounts 4,493 4,219 4,340 4,314 4,311
ATM and debit card fees 1,789 1,645 1,587 1,631 1,544
Broker/dealer and insurance
fees 967 908 527 571 736
Net securities gains (losses) 22 (934) (546) (737) 51
Bank owned life insurance
income 392 381 342 339 333
Retirement plan administration
fees 1,431 1,231 1,212 1,195 1,156
Other 2,003 2,416 1,736 1,746 1,673
----------------------------------------------------------------------
Total noninterest income 12,556 11,224 10,432 10,351 11,055
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Noninterest expense:
Salaries and employee benefits 16,335 15,748 13,863 15,438 15,253
Office supplies and postage 1,456 1,181 1,222 1,135 1,121
Occupancy 2,747 2,988 2,689 2,425 2,550
Equipment 2,067 2,156 2,120 1,971 1,931
Professional fees and outside
services 1,800 1,832 1,584 1,447 1,381
Data processing and
communications 2,649 2,702 2,548 2,613 2,530
Amortization of intangible
assets 466 323 142 142 142
Loan collection and other real
estate owned 289 211 278 115 208
Other operating 3,885 3,331 4,703 3,293 3,580
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Total noninterest expense 31,694 30,472 29,149 28,579 28,696
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Income before income taxes 20,528 19,143 18,709 18,971 19,363
Income taxes 6,359 5,555 5,714 5,445 6,235
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Net income $14,169 $13,588 $12,995 $13,526 $13,128
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Earnings per share:
Basic $0.41 $0.41 $0.40 $0.42 $0.41
Diluted $0.41 $0.40 $0.40 $0.41 $0.40
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CONTACT: NBT Bancorp Inc.
Martin A. Dietrich/Michael J. Chewens, 607-337-6119
SOURCE: NBT Bancorp Inc.