NBT Bancorp Inc. Announces Second Quarter Earnings of $0.42 per Diluted Share, Up 24% From Last Year; Declares Cash Dividend
NORWICH, NY, Jul 26, 2010 (MARKETWIRE via COMTEX) --
NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today net income per diluted share for the three months ended June 30, 2010 of $0.42, as compared with $0.34 per share for the three months ended June 30, 2009. Annualized return on average assets and return on average equity were 1.06% and 11.09%, respectively, for the three months ended June 30, 2010, compared with 0.85% and 9.63%, respectively, for the three months ended June 30, 2009. Net interest margin (on a fully taxable equivalent basis ("FTE")) was 4.14% for the three months ended June 30, 2010, up 19 basis points ("bp") from 3.95% for the three months ended June 30, 2009. Net income for the three months ended June 30, 2010 was $14.4 million, up $2.8 million, or 24.8%, from $11.6 million for the second quarter last year.
Net income per diluted share for the six months ended June 30, 2010 was $0.82 per share, as compared with $0.74 per share for the six months ended June 30, 2009. Annualized return on average assets and return on average equity were 1.04% and 11.07%, respectively, for the six months ended June 30, 2010, compared with 0.92% and 10.82%, respectively, for the six months ended June 30, 2009. FTE net interest margin was 4.17% for the six months ended June 30, 2010, up 15 bp from 4.02% for the six months ended June 30, 2009. Net income for the six months ended June 30, 2010 was $28.4 million, up $3.8 million, or 15.3%, from the six months ended June 30, 2009.
NBT President and CEO Martin Dietrich said: "We are very pleased with our financial performance during the second quarter of 2010. Especially encouraging is our nearly 25% gain in net income from the same quarter last year. We are also encouraged by the continuing improvement in our asset quality. While the economy remains challenging, we believe we are well positioned in terms of our performance and strategic investments for future growth."
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at June 30, 2010 were $39.2 million or 1.07% of total loans and leases compared with $40.8 million or 1.12% at March 31, 2010. Past due loans as a percentage of total loans has improved to 0.82% at June 30, 2010, as compared with 0.87% at March 31, 2010.
The allowance for loan and lease losses totaled $70.3 million at June 30, 2010 as compared with $70.2 million at March 31, 2010. The allowance for loan and lease losses as a percentage of loans and leases remained at 1.93% at June 30, 2010 as compared to March 31, 2010. Certain asset quality indicators such as nonperforming loans and past due loans have shown some encouraging trends, while potential problem loans have increased slightly from $82.4 million at March 31, 2010 to $87.7 million at June 30, 2010. The increase in potential problems loans was due primarily to the migration of four commercial loans to classified status, partially offset by a decrease in nonperforming loans. If these indicators continue to improve, it could result in a decrease in provisions for loan and lease losses in future periods.
The Company recorded a provision for loan and lease losses of $6.4 million during the second quarter of 2010, consistent with net charge-offs during the period of $6.2 million. The Company recorded a provision for loan and lease losses of $9.2 million during the second quarter of 2009, as compared with net charge-offs during the period of $5.8 million.
The Company recorded a provision for loan and lease losses of $15.6 million during the six months ended June 30, 2010, as compared with net charge-offs during the period of $11.8 million. The Company recorded a provision for loan and lease losses of $15.7 million during the six months ended June 30, 2009, as compared with net charge-offs during the period of $11.5 million.
Net Interest Income
Net interest income was up 5.3% to $50.6 million for the three months ended June 30, 2010 compared with $48.1 million for the three months ended June 30, 2009. The Company's fully taxable equivalent (FTE) net interest margin was 4.14% for the three months ended June 30, 2010, as compared with 3.95% for the three months ended June 30, 2009.
While the yield on interest earning assets decreased 31 basis points, the yield on interest bearing liabilities declined 58 basis points, which resulted in an increase in the net interest margin for the three months ended June 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.70% for the three months ended June 30, 2010, as compared with 4.59% for the three months ended June 30, 2009. The yield on loans and leases was 5.92% for the three months ended June 30, 2010, as compared with 6.05% for the three months ended June 30, 2009. The yield on time deposits was 2.12% for the three months ended June 30, 2010, as compared with 2.72% for the three months ended June 30, 2009. The yield on money market deposit accounts was 0.62% for the three months ended June 30, 2010, as compared with 1.33% for the three months ended June 30, 2009.
Net interest income was up 5.4% to $101.4 million for the six months ended June 30, 2010 compared with $96.2 million for the six months ended June 30, 2009. The Company's fully taxable equivalent (FTE) net interest margin was 4.17% for the six months ended June 30, 2010, as compared with 4.02% for the six months ended June 30, 2009. The Company experienced a 77.9% growth in average short-term interest bearing accounts for the six months ending June 30, 2010 as compared with the six months ending June 30, 2009. 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 six months ended June 30, 2010 as compared to the six months ended June 30, 2009.
While the yield on interest earning assets decreased 38 basis points, the yield on interest bearing liabilities declined 61 basis points, which resulted in an increase in the net interest margin for the six months ended June 30, 2010 compared to the same period for 2009. The yield on securities available for sale was 3.86% for the six months ended June 30, 2010, as compared with 4.74% for the six months ended June 30, 2009. The yield on loans and leases was 5.96% for the six months ended June 30, 2010, as compared with 6.11% for the six months ended June 30, 2009. The yield on time deposits was 2.16% for the six months ended June 30, 2010, as compared with 2.84% for the six months ended June 30, 2009. The yield on money market deposit accounts was 0.66% for the six months ended June 30, 2010, as compared with 1.34% for the six months ended June 30, 2009.
Noninterest Income
Noninterest income for the three months ended June 30, 2010 was $20.3 million, up $0.5 million or 2.4% from $19.8 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in other financial services revenue of approximately $0.5 million for the three months ended June 30, 2010 as compared to the same period in 2009. Retirement plan administration fees increased approximately $0.4 million for the three month period ended June 30, 2010 as compared with the three month period ended June 30, 2009 as a result of organic growth. In addition, trust revenue increased approximately $0.1 million for the three months ended June 30, 2010 as compared to the same period in 2009 due primarily to an increase in fair value of trust assets under administration. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.6 million due primarily to a decrease in overdraft activity in the second quarter of 2010 as compared with the second quarter of 2009.
Noninterest income for the six months ended June 30, 2010 was $40.7 million, up $1.3 million or 3.1% from $39.4 million for the same period in 2009. The increase in noninterest income was due primarily to an increase in retirement plan administration fees of approximately $1.1 million for the six month period ended June 30, 2010 as compared with the six month period ended June 30, 2009 as a result of organic growth. Trust revenue increased approximately $0.5 million for the six months ended June 30, 2010 as compared to the same period in 2009 due primarily to an increase in fair value of trust assets under administration. In addition, other financial services revenue increased approximately $0.4 million for the six months ended June 30, 2010 as compared to the same period in 2009. These increases were partially offset by a decrease in service charges on deposit accounts of approximately $0.8 million due primarily to a decrease in overdraft activity in the first six months of 2010 as compared with the first six months of 2009.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended June 30, 2010 was $44.2 million, up from $41.9 million, or 5.4%, for the same period in 2009. Salaries and employee benefits increased $4.3 million, or 21.4%, for the three months ended June 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. Other operating expenses increased approximately $0.7 million, or 18.0%, for the three month period ended June 30, 2010 as compared with the three months ended June 30, 2009. The 2009 expense was lower due to the settlement of a lease residual insurance policy for $1.2 million. These increases were partially offset by a decrease in FDIC expenses of approximately $2.5 million for the three month period ended June 30, 2010, as compared with the three months ended June 30, 2009. This decrease resulted from the special assessment levied by the FDIC in the second quarter of 2009. Income tax expense for the three month period ended June 30, 2010 was $6.0 million, up from $5.2 million for the same period in 2009.
Noninterest expense for the six months ended June 30, 2010 was $86.4 million, up from $84.2 million for the same period in 2009. Salaries and employee benefits increased $5.1 million, or 12.2%, for the six months ended June 30, 2010 compared with the same period in 2009. This increase was due primarily to increases in full-time-equivalent employees, merit increases and other employee benefits. Loan collection and other real estate owned expenses increased approximately $0.3 million, or 21.4%, for the six month period ended June 30, 2010 as compared with the six months ended June 30, 2009. This increase was due to higher property taxes paid by the Company on collateral securing certain loans during the six month period ending June 30, 2010. These increases were partially offset by a decrease in FDIC expenses of approximately $2.4 million for the six month period ended June 30, 2010, as compared with the six months ended June 30, 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 $0.7 million, or 12.8%, for the six month period ended June 30, 2010 as compared with the six months ended June 30, 2009. This decrease was due to legal fees incurred during the second quarter of 2009 related to de novo branch activity. Income tax expense for the six month period ended June 30, 2010 was $11.7 million, up from $11.1 million for the same period in 2009.
Balance Sheet
Total assets were $5.4 billion at June 30, 2010, down $48.9 million or 0.9% from December 31, 2009. Loans and leases were $3.6 billion at June 30, 2010, up $2.0 million from December 31, 2009. Total deposits were $4.1 billion at June 30, 2010, up $8.3 million from December 31, 2009. Stockholders' equity was $527.0 million, representing a total equity-to-total assets ratio of 9.73% at June 30, 2010, compared with $505.1 million or a total equity-to-total assets ratio of 9.24% at December 31, 2009.
Stock Repurchase Program
The Company made no purchases of its common stock securities during the six month period ending June 30, 2010. At June 30, 2010, there were 1,000,000 shares available for repurchase under a 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 2010 third-quarter cash dividend of $0.20 per share at a meeting held today. The dividend will be paid on September 15, 2010 to shareholders of record as of September 1, 2010.
Corporate Overview
NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $5.4 billion at June 30, 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 123 locations, including 85 NBT Bank offices in upstate New York, 37 Pennstar Bank offices in northeastern Pennsylvania and one office in Burlington, Vermont. 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 June 30,
Net Income $ 14,424 $ 11,560 $ 2,864 25%
Diluted Earnings Per Share $ 0.42 $ 0.34 $ 0.08 24%
Weighted Average Diluted
Common Shares Outstanding 34,565,005 34,314,291 250,714 1%
Return on Average Assets
(1) 1.06% 0.85% 21 bp 25%
Return on Average Equity
(1) 11.09% 9.63% 146 bp 15%
Net Interest Margin (2) 4.14% 3.95% 19 bp 5%
============ ============ ========= ========
Six Months Ended June 30,
Net Income $ 28,400 $ 24,632 $ 3,768 15%
Diluted Earnings Per Share $ 0.82 $ 0.74 $ 0.08 11%
Weighted Average Diluted
Common Shares Outstanding 34,485,201 33,483,222 1,001,979 3%
Return on Average Assets 1.04% 0.92% 12 bp 13%
Return on Average Equity 11.07% 10.82% 25 bp 2%
Net Interest Margin (2) 4.17% 4.02% 15 bp 4%
============ ============ ========= ========
Asset Quality June 30, December 31,
2010 2009
------------ ------------
Nonaccrual Loans $ 37,508 $ 38,746
90 Days Past Due and Still
Accruing $ 1,684 $ 2,526
Total Nonperforming Loans $ 39,192 $ 41,272
Other Real Estate Owned $ 1,466 $ 2,358
Total Nonperforming Assets $ 40,658 $ 43,630
Past Due Loans $ 29,776 $ 32,349
Potential Problem Loans $ 87,744 $ 79,072
Allowance for Loan and
Lease Losses $ 70,300 $ 66,550
Allowance for Loan and
Lease Losses to Total
Loans and Leases 1.93% 1.83%
Total Nonperforming Loans
to Total Loans and Leases 1.07% 1.13%
Total Nonperforming Assets
to Total Assets 0.75% 0.80%
Past Due Loans to Total
Loans and Leases 0.82% 0.89%
Allowance for Loan and
Lease Losses to Total
Nonperforming Loans 179.37% 161.25%
Net Charge-Offs to YTD
Average Loans and Leases 0.66% 0.70%
============ ============
Capital
Equity to Assets 9.73% 9.24%
Book Value Per Share $ 15.28 $ 14.69
Tangible Book Value Per
Share $ 11.40 $ 10.75
Tier 1 Leverage Ratio 8.75% 8.35%
Tier 1 Capital Ratio 11.88% 11.34%
Total Risk-Based Capital
Ratio 13.14% 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 24.16 20.57
December 31 23.59 19.43
------------- -------------
(1) Annualized
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
June 30, December 31, Net Percent
2010 2009 Change Change
----------- ----------- ---------- --------
(dollars in thousands,
except per share data)
Balance Sheet
Loans and Leases $ 3,647,445 $ 3,645,398 $ 2,047 0%
Earning Assets $ 4,968,203 $ 5,009,251 $ (41,048) -1%
Total Assets $ 5,415,161 $ 5,464,026 $ (48,865) -1%
Deposits $ 4,101,331 $ 4,093,046 $ 8,285 0%
Stockholders' Equity $ 527,022 $ 505,123 $ 21,899 4%
=========== =========== ========== ========
2010 2009
----------- ----------- ----------
Average Balances (dollars in thousands,
except per share data)
Three Months Ended June 30,
Loans and Leases $ 3,640,915 $ 3,653,166 $ (12,251)
Securities Available For Sale
(excluding unrealized gains or
losses) $ 1,114,315 $ 1,085,147 $ 29,168
Securities Held To Maturity $ 148,568 $ 138,180 $ 10,388
Trading Securities $ 2,605 $ 1,854 $ 751
Federal Reserve and Federal
Home Loan Bank stock $ 33,199 $ 38,221 $ (5,022)
Short-Term Interest Bearing
Accounts $ 106,784 $ 126,318 $ (19,534)
Total Earning Assets $ 5,043,781 $ 5,041,032 $ 2,749
Total Assets $ 5,482,336 $ 5,448,440 $ 33,896
Interest Bearing Deposits $ 3,372,297 $ 3,381,288 $ (8,991)
Non-Interest Bearing Deposits $ 779,841 $ 707,022 $ 72,819
Short-Term Borrowings $ 151,985 $ 120,272 $ 31,713
Long-Term Borrowings $ 577,179 $ 684,495 $ (107,316)
Total Interest Bearing
Liabilities $ 4,101,461 $ 4,186,055 $ (84,594)
Stockholders' Equity $ 521,632 $ 481,308 $ 40,324
=========== =========== ==========
Average Balances
Six Months Ended June 30,
Loans and Leases $ 3,640,528 $ 3,655,909 $ (15,381)
Securities Available For Sale
(excluding unrealized gains or
losses) $ 1,101,530 $ 1,087,317 $ 14,213
Securities Held To Maturity $ 152,164 $ 138,439 $ 13,725
Trading Securities $ 2,517 $ 1,644 $ 873
Federal Reserve and Federal
Home Loan Bank stock $ 33,959 $ 38,535 $ (4,576)
Short-Term Interest Bearing
Accounts $ 115,354 $ 64,843 $ 50,511
Total Earning Assets $ 5,043,535 $ 4,985,043 $ 58,492
Total Assets $ 5,485,920 $ 5,400,226 $ 85,694
Interest Bearing Deposits $ 3,374,231 $ 3,347,130 $ 27,101
Non-Interest Bearing Deposits $ 769,744 $ 694,001 $ 75,743
Short-Term Borrowings $ 154,605 $ 134,282 $ 20,323
Long-Term Borrowings $ 589,396 $ 695,517 $ (106,121)
Total Interest Bearing
Liabilities $ 4,118,232 $ 4,176,929 $ (58,697)
Stockholders' Equity $ 517,426 $ 459,120 $ 58,306
=========== =========== ==========
NBT Bancorp Inc. and Subsidiaries June 30, December 31,
Consolidated Balance Sheets (unaudited) 2010 2009
------------- -------------
(in thousands)
ASSETS
Cash and due from banks $ 105,329 $ 107,980
Short term interest bearing accounts 61,708 79,181
Securities available for sale, at fair value 1,137,986 1,116,758
Securities held to maturity (fair value of
$124,456 and $161,851 at June 30, 2010 and
December 31, 2009, respectively) 122,549 159,946
Trading securities 2,495 2,410
Federal Reserve and Federal Home Loan Bank
stock 32,178 35,979
Loans and leases 3,647,445 3,645,398
Less allowance for loan and lease losses 70,300 66,550
============= =============
Net loans and leases 3,577,145 3,578,848
Premises and equipment, net 66,305 66,221
Goodwill 114,841 114,938
Intangible assets, net 19,055 20,590
Bank owned life insurance 73,773 74,751
Other assets 101,797 106,424
------------- -------------
TOTAL ASSETS $ 5,415,161 $ 5,464,026
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing) $ 798,454 $ 789,989
Savings, NOW, and money market 2,337,642 2,269,779
Time 965,235 1,033,278
------------- -------------
Total deposits 4,101,331 4,093,046
Short-term borrowings 159,036 155,977
Long-term debt 479,461 554,698
Trust preferred debentures 75,422 75,422
Other liabilities 72,889 79,760
------------- -------------
Total liabilities 4,888,139 4,958,903
Total stockholders' equity 527,022 505,123
============= =============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,415,161 $ 5,464,026
============= =============
NBT Bancorp Inc. and Subsidiaries Three months ended Six months ended
Consolidated Statements of Income June 30, June 30,
(unaudited) 2010 2009 2010 2009
--------- --------- --------- ---------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $ 53,503 $ 54,886 $ 107,195 $ 110,297
Securities available for sale 9,556 11,671 19,602 24,046
Securities held to maturity 1,078 1,209 2,215 2,443
Other 469 606 1,065 967
--------- --------- --------- ---------
Total interest, fee and dividend
income 64,606 68,372 130,077 137,753
--------- --------- --------- ---------
Interest expense:
Deposits 7,999 13,123 16,453 26,962
Short-term borrowings 123 124 247 271
Long-term debt 4,850 5,998 9,915 12,195
Trust preferred debentures 1,033 1,076 2,060 2,162
--------- --------- --------- ---------
Total interest expense 14,005 20,321 28,675 41,590
--------- --------- --------- ---------
Net interest income 50,601 48,051 101,402 96,163
Provision for loan and lease losses 6,350 9,199 15,593 15,650
--------- --------- --------- ---------
Net interest income after provision
for loan and lease losses 44,251 38,852 85,809 80,513
--------- --------- --------- ---------
Noninterest income:
Trust 1,909 1,761 3,675 3,170
Service charges on deposit accounts 6,301 6,950 12,431 13,247
ATM and debit card fees 2,462 2,368 4,829 4,550
Insurance and other financial
services revenue 4,700 4,220 9,945 9,558
Net securities gains 63 17 91 17
Bank owned life insurance income 808 670 1,789 1,542
Retirement plan administration fees 2,595 2,194 4,985 3,935
Other 1,482 1,665 2,916 3,416
--------- --------- --------- ---------
Total noninterest income 20,320 19,845 40,661 39,435
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee benefits 24,224 19,947 46,428 41,374
Office supplies and postage 1,454 1,429 2,996 2,959
Occupancy 3,666 3,610 7,818 7,775
Equipment 2,041 2,005 4,141 4,027
Professional fees and outside
services 2,191 2,407 4,475 5,129
Data processing and communications 3,265 3,324 6,483 6,619
Amortization of intangible assets 780 825 1,561 1,638
Loan collection and other real
estate owned 668 674 1,727 1,422
FDIC expenses 1,560 4,032 3,113 5,561
Other operating 4,348 3,686 7,615 7,740
--------- --------- --------- ---------
Total noninterest expense 44,197 41,939 86,357 84,244
--------- --------- --------- ---------
Income before income taxes 20,374 16,758 40,113 35,704
Income taxes 5,950 5,198 11,713 11,072
--------- --------- --------- ---------
Net income $ 14,424 $ 11,560 $ 28,400 $ 24,632
--------- --------- --------- ---------
Earnings Per Share:
Basic $ 0.42 $ 0.34 $ 0.83 $ 0.74
Diluted $ 0.42 $ 0.34 $ 0.82 $ 0.74
========= ========= ========= =========
NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements 2Q 1Q 4Q 3Q 2Q
of Income (unaudited) 2010 2010 2009 2009 2009
------- ------- ------- ------- -------
(in thousands, except per share
data)
Interest, fee and dividend income:
Loans and leases $53,503 $53,692 $55,361 $54,666 $54,886
Securities available for sale 9,556 10,046 10,810 11,116 11,671
Securities held to maturity 1,078 1,137 1,212 1,239 1,209
Other 469 596 621 615 606
------- ------- ------- ------- -------
Total interest, fee and dividend
income 64,606 65,471 68,004 67,636 68,372
------- ------- ------- ------- -------
Interest expense:
Deposits 7,999 8,454 9,532 12,002 13,123
Short-term borrowings 123 124 139 142 124
Long-term debt 4,850 5,065 5,673 5,761 5,998
Trust preferred debentures 1,033 1,027 1,036 1,049 1,076
------- ------- ------- ------- -------
Total interest expense 14,005 14,670 16,380 18,954 20,321
------- ------- ------- ------- -------
Net interest income 50,601 50,801 51,624 48,682 48,051
Provision for loan and lease
losses 6,350 9,243 8,641 9,101 9,199
------- ------- ------- ------- -------
Net interest income after
provision for loan and lease
losses 44,251 41,558 42,983 39,581 38,852
------- ------- ------- ------- -------
Noninterest income:
Trust 1,909 1,766 1,881 1,668 1,761
Service charges on deposit
accounts 6,301 6,130 6,808 7,110 6,950
ATM and debit card fees 2,462 2,367 2,346 2,443 2,368
Insurance and other financial
services revenue 4,700 5,245 3,799 4,368 4,220
Net securities gains/(losses) 63 28 (2) 129 17
Bank owned life insurance income 808 981 910 683 670
Retirement plan administration
fees 2,595 2,390 2,739 2,412 2,194
Other 1,482 1,434 1,365 2,037 1,665
------- ------- ------- ------- -------
Total noninterest income 20,320 20,341 19,846 20,850 19,845
------- ------- ------- ------- -------
Noninterest expense:
Salaries and employee benefits 24,224 22,204 22,919 21,272 19,947
Office supplies and postage 1,454 1,542 1,472 1,426 1,429
Occupancy 3,666 4,152 3,608 3,481 3,610
Equipment 2,041 2,100 2,115 1,997 2,005
Professional fees and outside
services 2,191 2,284 2,688 2,691 2,407
Data processing and communications 3,265 3,218 3,314 3,305 3,324
Amortization of intangible assets 780 781 781 827 825
Loan collection and other real
estate owned 668 1,059 589 755 674
FDIC expenses 1,560 1,553 1,312 1,535 4,032
Other operating 4,348 3,267 6,492 3,743 3,686
------- ------- ------- ------- -------
Total noninterest expense 44,197 42,160 45,290 41,032 41,939
------- ------- ------- ------- -------
Income before income taxes 20,374 19,739 17,539 19,399 16,758
Income taxes 5,950 5,763 3,738 5,821 5,198
------- ------- ------- ------- -------
Net income $14,424 $13,976 $13,801 $13,578 $11,560
======= ======= ======= ======= =======
Earnings per share:
Basic $ 0.42 $ 0.41 $ 0.40 $ 0.40 $ 0.34
Diluted $ 0.42 $ 0.41 $ 0.40 $ 0.40 $ 0.34
======= ======= ======= ======= =======
Three months ended June 30,
Average 2010 Yield/ Average 2009 Yield/
(dollars in thousands) Balance Interest Rates Balance Interest Rates
---------- ------- ------ ---------- ------- ------
ASSETS
Short-term interest
bearing accounts $ 106,784 $ 75 0.28% $ 126,318 $ 63 0.20%
Securities available
for sale
(1)(excluding
unrealized gains or
losses) 1,114,315 10,286 3.70% 1,085,147 12,425 4.59%
Securities held to
maturity (1) 148,568 1,624 4.38% 138,180 1,822 5.29%
Investment in FRB and
FHLB Banks 33,199 394 4.76% 38,221 543 5.70%
Loans and leases (2) 3,640,915 53,713 5.92% 3,653,166 55,094 6.05%
---------- ------- ---------- -------
Total interest
earning assets $5,043,781 $66,092 5.25% $5,041,032 $69,947 5.56%
------- -------
Other assets 438,555 407,408
---------- ----------
Total assets $5,482,336 $5,448,440
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Money market deposit
accounts $1,130,124 1,743 0.62% $1,017,217 $ 3,381 1.33%
NOW deposit accounts 689,079 770 0.45% 581,534 848 0.58%
Savings deposits 557,109 214 0.15% 503,485 205 0.16%
Time deposits 995,985 5,272 2.12% 1,279,052 8,689 2.72%
---------- ------- ---------- -------
Total interest
bearing deposits $3,372,297 $ 7,999 0.95% $3,381,288 $13,123 1.56%
Short-term borrowings 151,985 123 0.32% 120,272 124 0.41%
Trust preferred
debentures 75,422 1,033 5.49% 75,422 1,076 5.72%
Long-term debt 501,757 4,850 3.88% 609,073 5,998 3.95%
---------- ------- ---------- -------
Total interest
bearing liabilities$4,101,461 $14,005 1.37% $4,186,055 $20,321 1.95%
------- -------
Demand deposits 779,841 707,022
Other liabilities 79,402 74,055
Stockholders' equity 521,632 481,308
---------- ----------
Total liabilities and
stockholders' equity $5,482,336 $5,448,440
---------- ----------
Net interest income
(FTE) 52,087 49,626
------- -------
Interest rate spread 3.88% 3.61%
Net interest margin 4.14% 3.95%
Taxable equivalent
adjustment 1,486 1,575
------- -------
Net interest income $50,601 $48,051
(1) Securities are shown at average amortized cost
(2) For purposes of these computations, nonaccrual loans are included in
the average loan balances outstanding
Six months ended June 30,
Average 2010 Yield/ Average 2009 Yield/
(dollars in thousands) Balance Interest Rates Balance Interest Rates
---------- -------- ----- ---------- -------- -----
ASSETS
Short-term interest
bearing accounts $ 115,354 $ 142 0.25% $ 64,843 $ 76 0.24%
Securities available
for sale
(1)(excluding
unrealized gains or
losses) 1,101,530 21,068 3.86% 1,087,317 25,539 4.74%
Securities held to
maturity (1) 152,164 3,338 4.42% 138,439 3,682 5.36%
Investment in FRB and
FHLB Banks 33,959 924 5.48% 38,535 892 4.67%
Loans and leases (2) 3,640,528 107,591 5.96% 3,655,909 110,722 6.11%
---------- -------- ---------- --------
Total interest
earning assets $5,043,535 $133,063 5.32% $4,985,043 $140,911 5.70%
-------- --------
Other assets 442,385 415,183
---------- ----------
Total assets $5,485,920 $5,400,226
---------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Money market deposit
accounts $1,112,154 3,639 0.66% $ 979,927 $ 6,489 1.34%
NOW deposit accounts 705,538 1,591 0.45% 565,974 1,634 0.58%
Savings deposits 544,961 407 0.15% 490,829 415 0.17%
Time deposits 1,011,578 10,816 2.16% 1,310,400 18,424 2.84%
---------- -------- ---------- --------
Total interest
bearing deposits $3,374,231 $ 16,453 0.98% $3,347,130 $ 26,962 1.62%
Short-term borrowings 154,605 247 0.32% 134,282 271 0.41%
Trust preferred
debentures 75,422 2,060 5.51% 75,422 2,162 5.78%
Long-term debt 513,974 9,915 3.89% 620,095 12,195 3.97%
---------- -------- ---------- --------
Total interest
bearing
liabilities $4,118,232 $ 28,675 1.40% $4,176,929 $ 41,590 2.01%
-------- --------
Demand deposits 769,744 694,001
Other liabilities 80,518 70,176
Stockholders' equity 517,426 459,120
---------- ----------
Total liabilities and
stockholders' equity $5,485,920 $5,400,226
---------- ----------
Net interest income
(FTE) 104,388 99,321
-------- --------
Interest rate spread 3.91% 3.69%
Net interest margin 4.17% 4.02%
Taxable equivalent
adjustment 2,986 3,158
-------- --------
Net interest income $101,402 $ 96,163
(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)
June 30, December 31,
(In thousands) 2010 2009
------------- -------------
Residential real estate mortgages $ 584,472 $ 622,898
Commercial 615,642 581,870
Commercial real estate mortgages 761,179 718,235
Real estate construction and development 76,346 76,721
Agricultural and agricultural real estate
mortgages 116,332 122,466
Consumer 854,343 856,956
Home equity 594,495 603,585
Lease financing 44,636 62,667
------------- -------------
Total loans and leases $ 3,647,445 $ 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.