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NBT Bancorp Inc. Announces Second Highest Annual Earnings in Company's History of $1.71 and Net Income of $57.9 Million; Declares Cash Dividend

01/23/12

NORWICH, N.Y., Jan. 23, 2012 (GLOBE NEWSWIRE) -- NBT Bancorp Inc. (NBT) (Nasdaq:NBTB) reported today net income per diluted share for the year ended December 31, 2011 was $1.71 per share, as compared with $1.66 per share for the year ended December 31, 2010. Return on average assets and return on average equity were 1.06% and 10.73%, respectively, for the year ended December 31, 2011, compared with 1.05% and 10.92%, respectively, for the year ended December 31, 2010. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.09% for the year ended December 31, 2011, down 6 basis points ("bp") from 4.15% for the year ended December 31, 2010. Net income for the year ended December 31, 2011 was $57.9 million, up $0.5 million, or 0.9%, from the year ended December 31, 2010.

Net income per diluted share for the three months ended December 31, 2011 was $0.41, as compared with $0.42 for the three months ended December 31, 2010. Annualized return on average assets and return on average equity were 0.97% and 10.09%, respectively, for the three months ended December 31, 2011, compared with 1.05% and 10.68%, respectively, for the three months ended December 31, 2010. Net interest margin (FTE) was 3.98% for the three months ended December 31, 2011, down 11 bp from 4.09% for the three months ended December 31, 2010. Net income for the three months ended December 31, 2011 was $13.7 million, down $0.7 million, or 4.9%, from $14.4 million for the fourth quarter last year.

Selected highlights for 2011 include:

  • Diluted earnings per share of $1.71 was the second highest in the history of the Company.
  • Net interest margin declined as a result of the continued low rate environment on loans and investments.
  • Despite a challenging environment, the Company achieved 4.1% organic loan growth (5.3% total loan growth).
  • Net charge-offs were 0.56% of average loans and leases for the year ended December 31, 2011, down 13 bps from the year ended December 31, 2010; provision for loan and lease losses was down $9.1 million for the same period.
  • Significant strategic expansion during 2011:

    • Expanded presence in Vermont with two denovo branch openings in Williston and Essex.
    • Expanded into Berkshire County, Massachusetts with the successful acquisition and conversion of four branches on October 21, 2011, including about $143 million in deposits and $46 million in loans.
    • Announced the acquisition of three branches in Greene County, New York, which closed on January 21, 2012.
    • Announced the planned acquisition of Hampshire First Bank, expected to close in the second quarter of 2012.
    • Purchased a building in Lenox, MA, which is scheduled to open as a fifth Massachusetts branch in February 2012.

"In 2011, NBT once again achieved near-record financial results with net income and earnings per share at their second-highest levels in the history of the Company. We're pleased to report that the period from 2008 through 2011 is the most profitable four-year term in NBT's history, particularly since it's been an extremely challenging time for our industry," said NBT President and CEO Martin Dietrich. "Through the efforts of our quality people, we continue to focus on aggressive management of our conservative banking strategy and strategic investments in our future. By adding de novo branches in key growth markets and expanding into new markets through acquisition, we are laying the groundwork for our continued success."

Loan and Lease Quality and Provision for Loan and Lease Losses

The Company recorded a provision for loan and lease losses of $20.7 million during the year ended December 31, 2011, as compared with $29.8 million during the year ended December 31, 2010. This decrease was due to the decrease in net charge-offs, which were $20.6 million for the year ended December 31, 2011 as compared to $25.1 million for the year ended December 31, 2010. In addition, the decrease in provision is attributable to the ongoing modeling of the required levels of reserves which considers historical charge-offs, loan growth and economic trends; during 2010 the results of such modeling required higher levels of provision than 2011.

Net charge-offs for the year ended December 31, 2011 were $20.6 million, down from $25.1 million for the year ended December 31, 2010. Net charge-offs to average loans and leases for the year ended December 31, 2011 was 0.56%, a 13 bp improvement from 0.69% for the year ended December 31, 2010. 

The Company recorded a provision for loan and lease losses of $5.6 million during the three months ended December 31, 2011, as compared with $6.7 million for the three months ended December 31, 2010. This decrease was due primarily to the decrease in net charge-offs, which were $5.6 million for the three months ended December 31, 2011, as compared to $7.3 million for the same period in 2010, due primarily to one large commercial loan charge-off during the fourth quarter of 2010. The annualized net charge-off ratio for the three months ended December 31, 2011 was 0.59% compared to 0.81% for the three months ended December 31, 2010. 

Past due loans as a percentage of total loans was 0.89% at December 31, 2011, as compared with 0.86% at December 31, 2010. Nonperforming loans decreased to $41.5 million or 1.09% of total loans and leases at December 31, 2011 compared with $44.8 million or 1.24% at December 31, 2010, due to the decrease in nonaccrual loans. 

The allowance for loan and lease losses totaled $71.3 million at December 31, 2011 as compared with $71.2 million at December 31, 2010. The allowance for loan and lease losses as a percentage of loans and leases was 1.88% at December 31, 2011 as compared to 1.97% at December 31, 2010. The slight decrease in allowance coverage reflects the modest improvement in certain asset quality indicators during the year, particularly the charge-off ratio. 

Net Interest Income

Net interest income was down 1.1% to $200.3 million for the year ended December 31, 2011 compared with $202.5 million for the year ended December 31, 2010. The Company's FTE net interest margin was 4.09% for the year ended December 31, 2011, as compared with 4.15% for the year ended December 31, 2010. 

While the rate on interest bearing liabilities decreased 29 bps, the yield on interest earning assets declined 33 bps, resulting in slight margin compression for the year ended December 31, 2011, compared to the same period for 2010. The yield on securities available for sale was 2.97% for the year ended December 31, 2011, as compared with 3.56% for the year ended December 31, 2010, while the yield on loans and leases was 5.58% for the year ended December 31, 2011, as compared with 5.90% for the year ended December 31, 2010. The rate on interest bearing liabilities declined 29 bp for the year ended December 31, 2011 as compared with the year ended December 31, 2010, primarily due to decreases in the rate on interest bearing deposits. The rate on time deposits was 1.80% for the year ended December 31, 2011, as compared with 2.06% for the year ended December 31, 2010. The rate on money market deposit accounts was 0.34% for the year ended December 31, 2011, as compared with 0.57% for the year ended December 31, 2010. 

Net interest income was $50.5 million for the three months ended December 31, 2011 and the three months ended December 31, 2010. The Company's FTE net interest margin was 3.98% for the three months ended December 31, 2011, as compared with 4.09% for the three months ended December 31, 2010. 

While the rate on interest bearing liabilities decreased 23 bps, the yield on interest earning assets declined 32 bps, resulting in margin compression for the three months ended December 31, 2011, compared to the same period for 2010. The yield on securities available for sale was 2.70% for the three months ended December 31, 2011, as compared with 3.05% for the three months ended December 31, 2010, while the yield on loans and leases was 5.45% for the three months ended December 31, 2011, as compared with 5.85% for the three months ended December 31, 2010. The rate on interest bearing liabilities declined 23 bp for the three months ended December 31, 2011 as compared with the three months ended December 31, 2010, primarily due to decreases in the rates on interest bearing deposits. The rate on time deposits was 1.72% for the three months ended December 31, 2011, as compared with 1.94% for the three months ended December 31, 2010. The rate on money market deposit accounts was 0.24% for the three months ended December 31, 2011, as compared with 0.44% for the three months ended December 31, 2010. 

Noninterest Income

Noninterest income for the year ended December 31, 2011 was $80.3 million, down $3.6 million or 4.3% from $83.9 million for the year ended December 31, 2010. The decrease in noninterest income was due primarily to a decrease in net securities gains of approximately $3.1 million for the year ended December 31, 2011 as compared to the year ended December 31, 2010 due to the sale of two equity positions and certain collateralized mortgage obligations ("CMO's") during 2010. In addition, the Company experienced a decrease in service charges on deposit accounts of approximately $2.6 million as a result of a decrease in overdraft activity due to the effects of a full year of new regulations regarding overdraft fees, as well as decreased activity due to the current state of the economy. Retirement plan administration fees decreased by $1.4 million, or 13.9%, for the year ended December 31, 2011 as compared to the year ended December 31, 2010, driven by the loss of one large client in the fourth quarter of 2010. These decreases were partially offset by an increase in insurance and other financial services revenue of $2.0 million, or 10.5%, for the year ended December 31, 2011 as compared to the same period in 2010. This increase was due primarily to the acquisition of an insurance agency during the second quarter of 2011 and an increase in brokerage commission revenue from new business. ATM and debit card fees increased approximately $1.6 million, or 16.0%, for the year ended December 31, 2011 as compared to the same period in 2010 due to an increase in card usage as well as a change in the fee structure on foreign ATM transactions. In addition, trust revenue increased approximately $1.1 million, or 14.8%, for the year ended December 31, 2011 as compared to the year ended December 31, 2010, due primarily to the addition of new business, including from markets where we have recently expanded, as well as an increase in the fair market value of trust assets under administration.             

Noninterest income for the three months ended December 31, 2011 was $20.1 million, down $2.1 million or 9.5% from $22.2 million for the same period in 2010. Net securities gains decreased approximately $2.0 million for the three months ended December 31, 2011 as compared to the same period in 2010. This decrease was due primarily to the sale of one equity position and certain CMO's in the three months ending December 31, 2010. In addition, retirement plan administration fees decreased approximately $0.6 million, or 20.8%, due primarily to the aforementioned loss of one client in the fourth quarter of 2010. These decreases were partially offset by an increase in insurance and other financial services revenue of approximately $0.6 million for the three months ended December 31, 2011 as compared with the same period in 2010, for aforementioned reasons. ATM and debit card fees increased approximately $0.4 million, or 14.3%, for the three months ended December 31, 2011 as compared to the same period in 2010 due to the aforementioned increase in card usage and change in fee structure on foreign ATM transactions.       

Noninterest Expense and Income Tax Expense

Noninterest expense for the year ended December 31, 2011 was $180.7 million, up from $178.3 million, or 1.3%, for the year ended December 31, 2010. Salaries and employee benefits increased $5.5 million, or 5.9%, for the year ended December 31, 2011 compared with the year ended December 31, 2010. This increase was due primarily to increases in full-time-equivalent employees driven primarily by strategic expansion efforts, merit increases, and other employee benefits. In addition, occupancy expenses increased approximately $1.0 million, or 6.6%, for the year ended December 31, 2011 as compared to the year ended December 31, 2010, primarily due to continued expansion and expenses related to the harsh winter in early 2011. Other operating expenses also increased approximately $2.3 million, or 17.7%, for the year ended December 31, 2011 compared with the year ended December 31, 2010 primarily as a result of flood related expenses totaling approximately $0.4 million and merger related expenses totaling approximately $0.8 million in 2011, with no other significant drivers. During the year ended December 31, 2010, the Company incurred debt prepayment penalties totaling $4.5 million to pay off long-term debt, which partially offset the aforementioned increases in noninterest expense. The increases in noninterest expense were also partially offset by a decrease in Federal Deposit Insurance Corporation (FDIC) premium expenses of approximately $1.8 million during the year ended December 31, 2011, as compared with the year ended December 31, 2010, due to the FDIC redefining the deposit insurance assessment base. Income tax expense for the year ended December 31, 2011 was $21.3 million, up slightly from $20.9 million for the year ended December 31, 2010. The effective tax rate was 26.9% for the year ended December 31, 2011, as compared to 26.7% for the year ended December 31, 2010. 

Noninterest expense for the three months ended December 31, 2011 was $47.4 million, up slightly from $47.3 million, for the same period in 2010. Salaries and employee benefits increased $1.9 million, or 8.2%, for the three months ended December 31, 2011 compared with the same period in 2010. This increase was due primarily to increases in full-time-equivalent employees driven primarily by strategic expansion efforts, merit increases, and other employee benefits. In addition, other operating expenses increased approximately $1.4 million, or 37.9%, for the three months ended December 31, 2011 compared with the same period in 2010 primarily as a result of merger related expenses incurred during the fourth quarter of 2011. During the three months ended December 31, 2010, the Company incurred debt prepayment penalties totaling $3.3 million to pay off long-term debt, which partially offset the aforementioned increases in noninterest expense. The increases in noninterest expense were also partially offset by a decrease in Federal Deposit Insurance Corporation (FDIC) premium expenses of approximately $0.5 million during the three months ended December 31, 2011, as compared with the same period in 2010, due to the aforementioned change in the assessment base. Income tax expense for the three months ended December 31, 2011 was $3.9 million, down from $4.4 million for the same period in 2010. The effective tax rate was 22.2% for the three months ended December 31, 2011, as compared to 23.2% for the same period in 2010. In the fourth quarter of 2011, the relatively low effective tax rate was driven primarily by a reduction in tax expense as a result of the settlement of a New York State tax audit during the fourth quarter of 2011 for tax years 2003 – 2007. Similarly, the relatively low effective tax rate for the fourth quarter of 2010 was driven primarily by a reduction in tax expense as a result of the settlement of a New York State tax audit during the fourth quarter of 2010 for tax years 2000 – 2002.

Balance Sheet

Total assets were $5.6 billion at December 31, 2011, up $259.6 million or 4.9% from December 31, 2010. Loans and leases were $3.8 billion at December 31, 2011, up $190.2 million from December 31, 2010. Total deposits were $4.4 billion at December 31, 2011, up $232.8 million from December 31, 2010. Stockholders' equity was $538.1 million, representing a total equity-to-total assets ratio of 9.61% at December 31, 2011, compared with $533.6 million or a total equity-to-total assets ratio of 9.99% at December 31, 2010.  

Stock Repurchase Program

Under previously disclosed stock repurchase plans, the Company purchased 1,458,609 shares of its common stock during the year ended December 31, 2011, for a total of $30.5 million at an average price of $20.91 per share. On July 25, 2011, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to 1,000,000 shares (approximately 3%) of its outstanding common stock, effective July 25, 2011, as market conditions warrant in open market and privately negotiated transactions. At December 31, 2011, there were 517,581 shares available for repurchase under this plan, which expires on December 31, 2013. 

On October 24, 2011, the NBT Board of Directors authorized a new repurchase program for NBT to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, effective October 24, 2011, as market conditions warrant in open market and privately negotiated transactions. At December 31, 2011, there were 1,000,000 shares available for repurchase under this plan, which expires on December 31, 2013.

Dividend Declared

The NBT Board of Directors declared a 2012 first-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on March 15, 2012 to shareholders of record as of March 1, 2012.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.6 billion at December 31, 2011. The company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions, and through two financial services companies. As of the date of this release, NBT Bank, N.A. has 131 locations, including 89 NBT Bank offices in upstate New York, four NBT Bank offices in Berkshire County, Massachusetts, three NBT Bank offices in northwestern Vermont and 35 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, N.Y., is a full-service 401(k) plan recordkeeping firm. Mang Insurance Agency, LLC, based in Norwich, N.Y., 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)
 
2011

2010
Net
Change
Percent
Change
(dollars in thousands, except per share data)
         
Three Months Ended December 31,        
Net Income $13,722 $14,434 ($712) -5%
Diluted Earnings Per Share $0.41 $0.42 ($0.01) -2%
Weighted Average Diluted Common Shares Outstanding 33,238,658 34,590,063 (1,351,405) -4%
Return on Average Assets (1) 0.97% 1.05% -8 bp -8%
Return on Average Equity (1) 10.09% 10.68% -59 bp -6%
Net Interest Margin (2) 3.98% 4.09% -11 bp -3%
         
Year Ended December 31,        
Net Income $57,901 $57,404 $497 1%
Diluted Earnings Per Share $1.71 $1.66 $0.05 3%
Weighted Average Diluted Common Shares Outstanding 33,923,645 34,508,959 (585,314) -2%
Return on Average Assets 1.06% 1.05% 1 bp 1%
Return on Average Equity 10.73% 10.92% -19 bp -2%
Net Interest Margin (2) 4.09% 4.15% -6 bp -1%
         
         
Asset Quality 

December 31,
2011
December 31,
2010
   
Nonaccrual Loans $38,290 $42,467    
90 Days Past Due and Still Accruing $3,190 $2,325    
Total Nonperforming Loans $41,480 $44,792    
Other Real Estate Owned $2,160 $901    
Total Nonperforming Assets $43,640 $45,693    
Allowance for Loan and Lease Losses $71,334 $71,234    
Year-to-Date (YTD) Net Charge-Offs $20,637 $25,125    
Allowance for Loan and Lease Losses to Total Loans and Leases 1.88% 1.97%    
Total Nonperforming Loans to Total Loans and Leases 1.09% 1.24%    
Total Nonperforming Assets to Total Assets 0.78% 0.86%    
Past Due Loans to Total Loans and Leases 0.89% 0.86%    
Allowance for Loan and Lease Losses to Total Nonperforming Loans 171.97% 159.03%    
Net Charge-Offs to YTD Average Loans and Leases 0.56% 0.69%    
         
Capital        
Equity to Assets 9.61% 9.99%    
Book Value Per Share $16.23 $15.51    
Tangible Book Value Per Share $11.70 $11.67    
Tier 1 Leverage Ratio 8.74% 9.16%    
Tier 1 Capital Ratio 11.56% 12.44%    
Total Risk-Based Capital Ratio 12.81% 13.70%    
 
Quarterly Common Stock Price 2011 2010
Quarter End   High  Low   High  Low
March 31 $24.98 $21.55 $23.99 $19.15
June 30 $23.32 $20.62 $25.96 $20.21
September 30 $23.25 $17.05 $23.06 $19.27
December 31 $22.63 $17.47 $24.96 $21.41
         
(1) Annualized
(2) Calculated on a FTE basis
         
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
 
  December 31,
2011
December 31,
2010
Net
Change
Percent
Change
(dollars in thousands)
Balance Sheet        
Loans and Leases $3,800,203 $3,610,006 $190,197 5%
Earning Assets $5,112,831 $4,914,972 $197,859 4%
Total Assets $5,598,406 $5,338,856 $259,550 5%
Deposits $4,367,149 $4,134,352 $232,797 6%
Stockholders' Equity $538,110 $533,572 $4,538 1%
         
  2011 2010    
Average Balances  (dollars in thousands)    
Three Months Ended December 31,        
Loans and Leases $3,758,834 $3,603,867 $154,967  
Securities Available For Sale (excluding unrealized gains or losses) $1,174,960 $1,097,887 $77,073  
Securities Held To Maturity $72,354 $100,204 ($27,850)  
Trading Securities $2,958 $2,703 $255  
Regulatory Equity Investment $27,021 $28,911 ($1,890)  
Short-Term Interest Bearing Accounts $110,871 $187,099 ($76,228)  
Total Earning Assets $5,144,040 $5,017,968 $126,072  
Total Assets $5,596,663 $5,449,848 $146,815  
Interest Bearing Deposits $3,341,455 $3,334,559 $6,896  
Non-Interest Bearing Deposits $1,043,285 $854,361 $188,924  
Short-Term Borrowings  $154,286 $164,311 ($10,025)  
Long-Term Borrowings $445,768 $482,279 ($36,511)  
Total Interest Bearing Liabilities $3,941,509 $3,981,149 ($39,640)  
Stockholders' Equity $539,554 $536,197 $3,357  
         
Average Balances         
Year Ended December 31,        
Loans and Leases $3,677,931 $3,629,047 $48,884  
Securities Available For Sale (excluding unrealized gains or losses) $1,123,215 $1,088,376 $34,839  
Securities Held To Maturity $81,558 $128,727 ($47,169)  
Trading Securities $3,086 $2,563 $523  
Regulatory Equity Investment $27,089 $31,850 ($4,761)  
Short-Term Interest Bearing Accounts $101,224 $137,818 ($36,594)  
Total Earning Assets $5,011,017 $5,015,818 ($4,801)  
Total Assets $5,445,941 $5,454,334 ($8,393)  
Interest Bearing Deposits $3,271,793 $3,340,873 ($69,080)  
Non-Interest Bearing Deposits $966,282 $805,594 $160,688  
Short-Term Borrowings  $153,965 $158,280 ($4,315)  
Long-Term Borrowings $445,457 $544,931 ($99,474)  
Total Interest Bearing Liabilities $3,871,215 $4,044,084 ($172,869)  
Stockholders' Equity $539,381 $525,474 $13,907  
     
NBT Bancorp Inc. and Subsidiaries  December 31,  December 31, 
Consolidated Balance Sheets (unaudited) 2011 2010
(in thousands)    
     
ASSETS    
Cash and due from banks  $128,517  $99,673
Short term interest bearing accounts  864  69,119
Securities available for sale, at fair value   1,244,619  1,129,368
Securities held to maturity (fair value of $72,198 and $98,759 at December 31, 2011 and December 31, 2010, respectively)  70,811  97,310
Trading securities  3,062  2,808
Federal Reserve and Federal Home Loan Bank stock  27,020  27,246
Loans and leases  3,800,203  3,610,006
Less allowance for loan and lease losses  71,334  71,234
 Net loans and leases 3,728,869 3,538,772
Premises and equipment, net  74,541  67,404
Goodwill  132,029  114,841
Intangible assets, net  18,194  17,543
Bank owned life insurance  77,626  75,301
Other assets  92,254  99,471
TOTAL ASSETS  $5,598,406  $5,338,856
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Deposits:    
 Demand (noninterest bearing)  $1,052,906  $911,741
 Savings, NOW, and money market  2,381,116  2,291,833
 Time  933,127  930,778
 Total deposits 4,367,149 4,134,352
Short-term borrowings  181,592  159,434
Long-term debt  370,344  369,874
Trust preferred debentures  75,422  75,422
Other liabilities  65,789  66,202
 Total liabilities 5,060,296 4,805,284
     
     
Total stockholders' equity  538,110  533,572
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $5,598,406  $5,338,856
     
NBT Bancorp Inc. and Subsidiaries  Three Months Ended
December 31,
 Year Ended
December 31,
Consolidated Statements of Income (unaudited) 2011 2010 2011 2010
(in thousands, except per share data)        
Interest, fee and dividend income:        
Loans and leases  $51,393  $ 52,933  $204,370  $213,429
Securities available for sale 7,461  7,944 31,083  36,167
Securities held to maturity 661  845 2,886  3,968
Other 383  627 1,658  2,174
 Total interest, fee and dividend income  59,898  62,349  239,997  255,738
Interest expense:        
Deposits 5,330  6,727 23,020  30,354
Short-term borrowings 39  64 205  402
Long-term debt 3,621  4,025 14,404  18,314
Trust preferred debentures 409  1,034 2,092  4,140
 Total interest expense  9,399  11,850  39,721  53,210
Net interest income  50,499  50,499  200,276  202,528
Provision for loan and lease losses 5,576  6,687 20,737  29,809
 Net interest income after provision for loan and lease losses  44,923  43,812  179,539  172,719
Noninterest income:        
Trust 2,480  2,261 8,864  7,722
Service charges on deposit accounts 5,405  5,657 21,464  24,041
ATM and debit card fees 2,911  2,546 11,642  10,035
Insurance and other financial services revenue 4,918  4,327 20,843  18,867
Net securities gains 52  2,063 150  3,274
Bank owned life insurance income 716  872 3,085  3,316
Retirement plan administration fees 2,184  2,759 8,918  10,356
Other 1,464  1,751 5,345  6,277
 Total noninterest income  20,130  22,236  80,311  83,888
Noninterest expense:        
Salaries and employee benefits 25,105  23,200 99,212  93,718
Office supplies and postage 1,655  1,564 6,073  6,102
Occupancy 3,967  3,823 16,363  15,350
Equipment 2,206  2,123 8,864  8,317
Professional fees and outside services 2,552  2,489 8,921  9,032
Data processing and communications 3,186  2,893 12,271  12,347
Amortization of intangible assets 760  744 3,046  3,072
Loan collection and other real estate owned 793  761 2,631  3,036
Advertising  1,174  1,266 3,460  3,487
FDIC expenses  886  1,347  4,267  6,081
Prepayment penalty on long-term debt  --   3,321  --   4,526
Other operating 5,128  3,719 15,568  13,223
 Total noninterest expense 47,412 47,250 180,676  178,291
Income before income taxes 17,641 18,798 79,174  78,316
Income taxes 3,919  4,364 21,273  20,912
 Net income  $13,722  $14,434  $57,901  $57,404
Earnings Per Share:        
 Basic  $0.42  $0.42  $1.72  $1.67
 Diluted  $0.41  $0.42  $1.71  $1.66
           
NBT Bancorp Inc. and Subsidiaries 4Q 3Q 2Q 1Q 4Q
Quarterly Consolidated Statements of Income (unaudited) 2011 2011 2011 2011 2010
(in thousands, except per share data)          
Interest, fee and dividend income:          
Loans and leases  $51,393  $50,991  $51,126  $50,860  $52,933
Securities available for sale 7,461 7,771 7,947 7,904 7,944
Securities held to maturity 661 680 745 800 845
Other 383 342 440 493 627
 Total interest, fee and dividend income 59,898 59,784 60,258 60,057 62,349
Interest expense:          
Deposits 5,330 5,352 6,051 6,287 6,727
Short-term borrowings 39 56 52 58 64
Long-term debt 3,621 3,621 3,591 3,571 4,025
Trust preferred debentures 409 394 400 889 1,034
 Total interest expense 9,399 9,423 10,094 10,805 11,850
Net interest income 50,499 50,361 50,164 49,252 50,499
Provision for loan and lease losses 5,576 5,175 6,021 3,965 6,687
 Net interest income after provision for loan and lease losses 44,923 45,186 44,143 45,287 43,812
Noninterest income:          
Trust  2,480 2,090 2,258 2,036 2,261
Service charges on deposit accounts 5,405 5,532 5,455 5,072 5,657
ATM and debit card fees 2,911 3,135 2,928 2,668 2,546
Insurance and other financial services revenue 4,918 5,127 5,025 5,773 4,327
Net securities gains 52 12 59 27 2,063
Bank owned life insurance income 716 674 660 1,035 872
Retirement plan administration fees 2,184 2,295 2,268 2,171 2,759
Other 1,464 1,329 1,208 1,344 1,751
 Total noninterest income 20,130 20,194 19,861 20,126 22,236
Noninterest expense:          
Salaries and employee benefits 25,105 25,068 24,035 25,004 23,200
Office supplies and postage 1,655 1,531 1,342 1,545 1,564
Occupancy 3,967 3,887 3,987 4,522 3,823
Equipment 2,206 2,288 2,180 2,190 2,123
Professional fees and outside services 2,552 2,215 2,088 2,066 2,489
Data processing and communications 3,186 3,054 3,117 2,914 2,893
Amortization of intangible assets 760 782 771 733 744
Loan collection and other real estate owned 793 676 443 719 761
Advertising 1,174 685 1,033 568 1,266
FDIC expenses 886 920 965  1,496  1,347
Prepayment penalty on long-term debt  --   --   --   --   3,321
Other operating 5,128 3,940 3,196 3,304 3,719
 Total noninterest expense 47,412 45,046 43,157 45,061 47,250
Income before income taxes 17,641 20,334 20,847 20,352 18,798
Income taxes 3,919 5,117 6,192 6,045 4,364
 Net income   $13,722  $15,217  $14,655  $14,307  $14,434
Earnings per share:          
 Basic  $0.42  $0.46  $0.43  $0.42  $0.42
 Diluted  $0.41  $0.45  $0.43  $0.41  $0.42
             
 Years ended December 31,             
    2011     2010  
  Average   Yield/ Average   Yield/
(dollars in thousands) Balance Interest Rates  Balance Interest Rates 
ASSETS            
Short-term interest bearing accounts $101,224 $269 0.27% $137,818 $354 0.26%
Securities available for sale (1) (excluding unrealized gains or losses)  1,123,215  33,319 2.97%  1,088,376  38,759 3.56%
Securities held to maturity (1)   81,558  4,350 5.33%  128,727  6,104 4.74%
Investment in FRB and FHLB Banks  27,089  1,389 5.13%  31,850  1,821 5.72%
Loans and leases (2)   3,677,931  205,318 5.58%  3,629,047  214,258 5.90%
 Total interest earning assets  $5,011,017  $244,645 4.88%  $5,015,818  $261,296 5.21%
Other assets  434,924      438,516    
Total assets  $5,445,941      $5,454,334    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Money market deposit accounts $1,070,003  3,592 0.34% $1,092,789  $ 6,273 0.57%
NOW deposit accounts  685,542  2,313 0.34%  709,920  2,938 0.41%
Savings deposits  602,918  635 0.11%  552,660  797 0.14%
Time deposits  913,330  16,480 1.80%  985,504  20,346 2.06%
 Total interest bearing deposits  $3,271,793  $23,020 0.70%  $3,340,873  $30,354 0.91%
Short-term borrowings  153,965  205 0.13%  158,280  402 0.25%
Trust preferred debentures  75,422  2,092 2.77%  75,422  4,140 5.49%
Long-term debt  370,035  14,404 3.89%  469,509  18,314 3.90%
 Total interest bearing liabilities  $3,871,215  $39,721 1.03%  $ 4,044,084  $53,210 1.32%
Demand deposits  966,282      805,594    
Other liabilities  69,063      79,182    
Stockholders' equity  539,381      525,474    
Total liabilities and stockholders' equity  $5,445,941     $5,454,334    
 Net interest income (FTE)    204,924      208,086  
Interest rate spread     3.85%     3.89%
Net interest margin     4.09%     4.15%
Taxable equivalent adjustment     4,648      5,558  
Net interest income    $200,276      $202,528  
             
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in the average loan balances outstanding
             
 Three Months ended December 31,   
    2011     2010  
  Average   Yield/ Average   Yield/
(dollars in thousands) Balance Interest Rates  Balance Interest Rates 
ASSETS            
Short-term interest bearing accounts $110,871 $79 0.28% $187,099 $135 0.29%
Securities available for sale (1) (excluding unrealized gains or losses)  1,174,960  7,988 2.70%  1,097,887  8,433 3.05%
Securities held to maturity (1)   72,354  997 5.47%  100,204  1,402 5.55%
Investment in FRB and FHLB Banks  27,021  306 4.49%  28,911  492 6.75%
Loans and leases (2)   3,758,834  51,640 5.45%  3,603,867  53,160 5.85%
 Total interest earning assets  $5,144,040  $61,010 4.71%  $5,017,968  $63,622 5.03%
Other assets  452,623      431,880    
Total assets  $5,596,663      $5,449,848    
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Money market deposit accounts $1,067,130  655 0.24% $1,068,707  $1,188 0.44%
NOW deposit accounts  740,529  568 0.30%  762,567  732 0.38%
Savings deposits  614,030  119 0.08%  555,622  174 0.12%
Time deposits  919,766  3,988 1.72%  947,663  4,633 1.94%
 Total interest bearing deposits  $3,341,455  $5,330 0.63%  $3,334,559  $6,727 0.80%
Short-term borrowings  154,286  39 0.10%  164,311  64 0.16%
Trust preferred debentures  75,422  409 2.15%  75,422  1,034 5.44%
Long-term debt  370,346  3,621 3.88%  406,857  4,025 3.93%
 Total interest bearing liabilities  $3,941,509  $9,399 0.95%  $3,981,149  $11,850 1.18%
Demand deposits  1,043,285      854,361    
Other liabilities  72,315      78,141    
Stockholders' equity  539,554      536,197    
Total liabilities and stockholders' equity  $5,596,663      $5,449,848    
 Net interest income (FTE)    51,611      51,772  
Interest rate spread     3.76%     3.85%
Net interest margin     3.98%     4.09%
Taxable equivalent adjustment     1,112      1,273  
Net interest income    $50,499      $50,499  
             
(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)
 
(In thousands) December 31,
2011
December 31,
2010
Residential real estate mortgages $581,511 $548,394
Commercial  611,298  577,731
Commercial real estate mortgages  888,879  844,458
Real estate construction and development  93,977  45,444
Agricultural and agricultural real estate mortgages  108,423  112,738
Consumer  946,470  905,563
Home equity  569,645  575,678
 Total loans and leases  $3,800,203  $3,610,006
CONTACT: Martin A. Dietrich, CEO
         Michael J. Chewens, CFO
         NBT Bancorp Inc.
         52 South Broad Street
         Norwich, NY 13815
         607-337-6119
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